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 Topics
-
Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
-
What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
-
Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
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.