The latest statistics indicate that the number of Small and Medium Enterprises (SME’s) making R&D tax credits claims is rising year on year, with a total pay-out value of over £1b in 2014-15.
“A SME may claim a higher rate of relief than a large company. Also, a SME which has no tax bill to reduce may claim a cash payment instead.”
SMEs are also gaining an increasing share of the total amount paid out by Government. In 2014-15 the total tax relief support was £2.45 billion of which £1.1bn was claimed through the SME scheme. In 2013-14 the total amount paid out was £1.75bn of which £800m was claimed through the SME scheme.
The SME R&D scheme is applicable to companies with under 500 employees (that meet certain qualification criteria) while the Large Company R&D scheme and the newly launched RDEC scheme, is for companies with over 500 employees.
The image below provides an illustration of just a few of the types of companies and activities that have resulted in successful claims.
Linda Eziquiel, Principal Consultant