| Thousands of companies
are benefiting from research and
development (R&D) tax credits, according
to new figures from HM Revenue & Customs
(HMRC). The figures, released in March,
show that since the tax credits were
introduced in 2000, 51,060 claims have
been made, up to the end of the financial
year 2008-09.
In 2008-09 alone, there were 8,540
claims – the highest annual figure since
the R&D scheme began – receiving £980
million in tax credits. The total paid out
in tax credits since 2000 was nearly £5
billion.
R&D tax credits are available, broadly
speaking, when a research project seeks to
achieve an advance in science or
technology. Certain costs involved in the
R&D may qualify for the tax credits,
including expenditure on R&D staff,
materials used in the R&D.
Companies spending at least £10,000 in
their accounting year on qualifying R&D
are entitled to claim a deduction when
calculating their taxable profits of 150
per cent before, and 175 per cent on or
after, 1 August 2008. For larger
companies, the equivalent deductions are
125 per cent and 130 per cent.
Changes introduced in the 23 March
Budget mean that the tax relief will
become even more attractive to small
companies, with the rates rising to 200
per cent in April 2011 and to 225 per cent
from April 2012. LINK:
R&D tax credits explained |
