Increased R&D payable credits for loss-making SMEs

Tue 01 Apr 2014

From 1 April 2014 the rate of R&D payable tax credit available to loss-making small and medium sized enterprises (SMEs) will be increased from 11 per cent to 14.5 per cent. Repayable credits are available to SMEs that do not have a corporation tax liability and so would not otherwise obtain any immediate benefit from R&D tax relief (and might never do so).  The increased rate means that loss-making SMEs will be able to obtain a cash credit of 32.6p per pound spent on qualifying R&D expenditure from 1 April 2014 – in other words nearly 1/3 of spend will be covered by this relief.

The increased credits apply to expenditure incurred on or after 1 April 2014.