R&D tax credit increased for small business

Small businesses and start-ups that do research and development (R&D) will receive more cash from HMRC, Chancellor George Osborne announced in the Budget.

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...

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Comments

Combined with the AIA......

Simon@CoodenCon... | | Permalink

increase to £500k, there is the real possibility that the increase in the R&D Tax Credit rate to 14.5% could actually be of significant benefit to more than just loss-making, start-ups. Significant entities could turn their taxable profit into a loss if they have acquired eligible plant and machinery doing the year and were performing R&D. Effectively, you could be claiming up to 33% of your R&D costs as a tax credit.

R_DTaxCreditsBristol's picture

Great news for loss-making businesses

R_DTaxCreditsBristol | | Permalink

As this article doesn't really make clear, the scale of the benefit for a loss making business has increased considerably. A loss making business investing £100k in eligible R&D activity can now claim up to £32,625 as a cash credit, an increase of 16%. A profitable company can claim up to around 25% back under the scheme.