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
-
HMRC to raid bank accounts for unpaid tax
HMRC is restarting the use of direct debt recovery for individuals and businesses who choose not to pay the tax they owe despite having the means to do so. Who’s in the firing line?
-
Mortgage interest: don’t miss out on unused relief!
You own a buy-to-let property and need to report your profits for 2024/25. You have a mortgage, but your calculations show that the tax reducer will exceed the rental profit. Will the excess go to waste?
-
When should you submit a protective claim to HMRC?
Your business has charged VAT on some sales but a recent tribunal decision has indicated that the goods are zero-rated according to the law. Should you submit a claim to HMRC for a rebate on your past sales?