R&D tax credits increasing to 14.5% for loss makers
A new R&D scheme will be introduced for SMEs from 1 April 2023. What’s it all about?
R&D intensive SMEs will be able to claim a repayable tax credit of 14.5% under the new scheme announced in the Budget. The scheme is aimed at loss-making companies that are considered R&D “intensive”. To qualify as R&D intensive, the company must be spending at least 40% of its total expenses on qualifying R&D. The tax credit under the existing scheme is 10%, so the increase from 1 April will be a welcome boost for such companies. However, they will have to wait until the legislation is enacted before making a claim under the new scheme. Companies that do not meet the criteria to qualify as R&D intensive can continue to claim relief at the existing rate of 10%.
Related News
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
-
Personal vs company donation to charity
You’re an owner manager and want to make a £5,000 donation to a local charity. You’ve claimed income tax relief under the gift aid scheme for smaller amounts but could it be more tax efficient to make the donation via the company?
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.