R&D
Tax Relief for Your
Business
Updates...
New guidance is being
issued soon (hopefully in 2009) on HMRC's interpretation of indirect
costs, which promise to extend the scope of what might be claimed. Any
such interpretation would apply to any claims that are still within the
normal time limits for changes, currently 12 months after a tax return
is due, so a claim already made could be adjusted.
The 2008 budget
confirmed one of the significant changes proposed in the 2007
budget, and the main change to extend the definition of an SME to
include larger companies now starts from the 1st of August 2008, as does the
increase in the SME superdeduction thresholds. The EU have required two
new conditions to be applied to claims under the SME (and Vaccine
relief) regimes:
- The latest company accounts must have been produced on a "going concern" basis
- A cap of €7.5m of aid per project over its whole lifetime
New SME Definition
- Less than 500 employees
- No more than €100m
turnover or €86m gross assets
- Must be Independent (as now)
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Applies from the 1st of August 2008
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New
Superdeduction Thresholds
- 75% for SMEs
- 30% for Large Companies
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The
new rate for Large Companies was confirmed in the 2008 budget, and will
apply from April 2008. The SME increase applies from the 1st of August 2008.
The payable tax credit increases slightly to 24.5% of the eligible
spend (14% of enhanced losses)
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