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
-
Can you claim input tax without a VAT invoice?
One of our clientss cannot provide a tax invoice to HMRC to support an input tax claim on the purchase of machinery three years ago. What alternative evidence should be acceptable to the officer?
-
CT61
-
How to apportion advisory mileage rates for EVs
In September, HMRC introduced a new two-tier advisory mileage rate for employees charging electric vehicles. The rate differs depending on whether the vehicle is charged at home or not. But what’s the correct approach if an employee does both?