Sunderland Business Network - News Detail

Small and medium-sized businesses stand to benefit to the tune of £180 million as the EC approves improvements to the UK’s Small & Medium sized Enterprise (SME) Research and Development Tax Relief scheme.
The improvements are expected to be implemented from 1 August and double the criteria for qualification as an SME from having less than 250 to having less than 500 employees and either turnover not exceeding €100 million or an annual balance sheet total not exceeding €86 million.
The rate of relief for the newly defined SME companies will also increase from an additional 50% to an additional 75% of the eligible expenditure for amounts incurred on or after 1 August.
The price paid for EC acceptance of these changes was the introduction of two restrictions to the SME scheme. The first prevents companies whose accounts are not prepared on a going concern basis from claiming the SME relief and the second imposes a lifetime cap of €7.5 million on the additional benefit provided by the SME scheme after 1 August.

Submitted by: Sunderland Business Network