R&D Tax Relief Increased
The Government is continuing to support and enhance the R&D tax relief regime for innovative companies.The latest measure, announced in the 2017 Autumn Budget, increases the rate of R&D expenditure credit for companies claiming under the large company scheme from 11% to 12%.This is the relief available to those companies that do not qualify for the more generous relief available to SMEs.The change applies to expenditure incurred on or after 1 January 2018.
The new measure also benefits SME companies if they are restricted to claiming tax benefit for R&D under the large company scheme rules, for example when a State Aid grant is received for an R&D project, or if they are undertaking R&D as a sub-contractor for a large company.
The R&D tax relief scheme for SME companies has been maintained at its current rates, giving tax relief at 43.7% of the expenditure assuming a 19% corporate tax rate.Loss making SMEs can receive £33.35 R&D tax credit from HMRC for every £100 of qualifying R&D expenditure.
Jackson Stephen’s specialist R&D team have secured tax refunds in excess of £16 million.However many companies are still missing out on this valuable tax relief.Recent HMRC statistics published in September 2017 show that the North West is still behind London and the South East in terms of the number of claims and amount claimed.
If you would like to discuss the potential to make a claim on a no obligation basis please contact Steve Crompton or Carole Brown on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
Senior Tax Manager
direct dial: 01942 292564