Small businesses investing in expensive research and development can claim more tax relief from this month (November).
The two-year plan, which is a response to an HMRC consultation, is aimed at increasing the take-up of research and tax relief through raising awareness of the relief amongst small businesses and making it easier for them to apply.
Stephen Payne, a director of Whitley Stimpson, the largest independent accounting and business advisers in the M40 corridor, explained: “The tax relief, which encourages companies to invest in costly new product development, helps companies reduce the amount of corporation tax they pay on profits by offsetting them against research and development.”
Statistics for 2013/14 show more than 15,000 small and medium sized businesses claimed the relief, an increase of about 19 per cent from the previous year, but the Government now wants to go further.
Stephen said: “The new rules affect companies with a turnover of under £2 million and fewer than 50 employees and should help them to plan their finances effectively.
Stephen can be contacted at Whitley Stimpson on 01869 252152 or on email firstname.lastname@example.org