Published: 23rd March 2023
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%.