R&D tax credit increased for small business
From 1 April 2014, the tax credit for loss-making small and medium-sized businesses will be increased from 11% to 14.5%. The tax credit - paid in cash - is to encourage businesses to invest and innovate.
Around 10,000 small businesses claim R&D tax relief each year, HMRC said.
Jumpstart, which advises businesses on claiming R&D tax credit, said the more generous tax breaks create the "right climate for enterprise and innovation."
The R&D tax rules define an SME as a company or organisation with fewer than 500 employees and either an annual turnover not exceeding £83m, or a balance sheet not exceeding £72m.