The government has recently launched a new plan to help small businesses investing in research and development (R&D) to claim tax relief.
From November 2015 companies with a turnover under £2m and fewer than 50 employees will be able to seek advance assurance on R&D tax relief, in a move aimed at giving them greater certainty.
'We're pleased on how the scheme's been working, but we said in the Budget we want to build on this positive trend,' Financial Secretary to the Treasury David Gauke told BusinessZone.
The Treasury is implementing a two-year promotional plan to increase take-up of the tax relief and Gauke added that in the long-term the Treasury will work with HMRC to identify businesses that might be suitable and approach them directly, as well as making bespoke advice available in April 2016.
The tax relief allows companies to offset the amount of corporation tax they pay on profits against any investment in research and development. It works by way of 'super deduction', with businesses able to reduce profits liable to corporation tax by 230% of their qualifying R&D expenditure.
More than 15,000 SMEs claimed the relief in 2013-2014 tax year, an increase of around 19% from the previous period.
In 2013-14, businesses received £1.75bn in R&D tax relief.
Gauke said the government does not have a target for increasing take-up of the scheme.
From November 2015 companies with a turnover under £2m and fewer than 50 employees will be able to seek advance assurance on R&D tax relief, in a move aimed at giving them greater certainty.
'We're pleased on how the scheme's been working, but we said in the Budget we want to build on this positive trend,' Financial Secretary to the Treasury David Gauke told BusinessZone.
The Treasury is implementing a two-year promotional plan to increase take-up of the tax relief and Gauke added that in the long-term the Treasury will work with HMRC to identify businesses that might be suitable and approach them directly, as well as making bespoke advice available in April 2016.
The tax relief allows companies to offset the amount of corporation tax they pay on profits against any investment in research and development. It works by way of 'super deduction', with businesses able to reduce profits liable to corporation tax by 230% of their qualifying R&D expenditure.
More than 15,000 SMEs claimed the relief in 2013-2014 tax year, an increase of around 19% from the previous period.
In 2013-14, businesses received £1.75bn in R&D tax relief.
Gauke said the government does not have a target for increasing take-up of the scheme.
