Good news for Businesses eligible for R&D Tax Credits in the 2014 Autumn Statement
In yesterday’s 2014 Autumn Statement, the Chancellor of the Exchequer, George Osborne, announced that the Research and Development (R&D) tax credit for small and medium companies will be increased from 225% to 230% whilst the credit for large firms will increase to 11%.
On the face of it, the announcement is positive news for UK business, and the government will no doubt hope that the increase will further encourage innovation, increase R&D spending and attract further investment in innovation by companies operating in the UK.
For those not familiar with R&D tax credits, the scheme is an HM Revenue & Customs (HMRC) incentive offering corporate tax relief or even a corporate tax refund. The relief is based on a company’s expenditure on R&D, and for there to be R&D for the purpose of the tax relief, a company must be carrying on a project that seeks an advance in science or technology.
First launched in 2000-2001, with less than 2,000 benefit claims, the number of claims has increased year on year, with close to 16,000 benefit claims made in 2012-2013, representing £1.4 billion of tax relief support for companies. In total, over 28,000 businesses have benefited from the scheme over the years.
The following link showing the latest statistics demonstrates just how beneficial the R&D tax credit scheme can be for companies.
What are the next steps for your business?
TLIP’s client base extends from FTSE100 companies through to start-ups, with the vast majority currently benefiting from the scheme.
Therefore, if you would like advice on how R&D tax credits could benefit your business then do not hesitate to get in touch with us.