New 14.5% SME R&D Tax Credit – How does this work?

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A number of questions have been coming in from clients and contacts regarding what the new improved rate of R&D tax credit for loss-making SMEs means in practice?

Here we show you how the numbers work with some simplified examples and demonstrate how the Government will effectively subsidise 1/3 of the company’s R&D costs.

Identifying and maximising relevant R&D costs becomes even more crucial given this step up in the repayable tax credit amount from HMRC.