Recommendation 42

If the Government persists with its current timetable for the merged scheme, we recommend, notwithstanding the reservations set out in our conclusion above, that transitional provisions be included in the legislation so that providers can continue to claim relief for R&D done under an existing subcontracting arrangement for a specified period. This would enable them to review their existing arrangements and negotiate any changes needed for their contracts to remain financially viable. Any such transitional arrangements should be as simple as possible to implement and should last no longer than is necessary to enable those affected to adjust to the new sub- contracting regime. (Paragraph 168) Changes to HMRC Data Collection