The recent changes to the research and development (R&D) tax credits schemes by the Chancellor of the Exchequer have been welcomed by small and medium-sized enterprises (SMEs) across the UK. The changes aim to increase the accessibility and simplicity of the schemes, while also ensuring that they remain effective in promoting innovation and growth in the business sector.
Under the new rules, the SME scheme will now offer a tax credit rate of 13% on qualifying R&D expenditures, which is a significant increase from the previous rate of 12%. In addition, the cap on qualifying expenditure will be raised from £20,000 to £50,000, providing even more financial support for SMEs that are investing in R&D.
The changes to the R&D tax credits schemes are part of the government's efforts to support SMEs and promote innovation in the UK. SMEs are a vital component of the UK economy, accounting for over 99% of all businesses and contributing significantly to job creation and economic growth.
At Unicorn Accountants, we welcome the changes to the R&D tax credits schemes and believe that they will have a positive impact on SMEs across the country. We work closely with SMEs to help them navigate the complexities of the tax system and ensure that they are taking advantage of all available tax credits and incentives.
If you are an SME that is investing in R&D, it's important to speak to a qualified accountant or tax advisor to ensure that you are claiming all available tax credits and taking advantage of the new changes to the scheme. At Unicorn Accountants, we can provide you with the guidance and support you need to maximise your tax savings and achieve your business goals.
The changes to the R&D tax credits schemes are a positive development for SMEs in the UK. The increased tax credit rate and cap on qualifying expenditure will provide much-needed support and financial relief for SMEs that are investing in R&D. At Unicorn Accountants, we are committed to helping SMEs navigate the complex tax landscape and achieve their full potential.