SMEs urged to consider R&D tax credits
A lack of awareness and daunting jargon means many SMEs are missing out on potentially thousands of pounds in R&D tax credits. Introduced in 2000, the credits enable businesses to reclaim up to 33p for every £1 spent on “advances in science and technology”. In the 2014-15 tax year, £2.5bn of R&D tax relief was claimed, with SMEs accounting for £1bn - up from £325m the previous year. However, a recent survey reveals only 5% of small businesses have used R&D tax credits, compared with 50% of large companies. “The government needs to explore how it might better promote the scheme, as well as simplifying the application process so it is less onerous,” says the FSB’s Mike Cherry.
Source: The Sunday Times (16/07/2017)