The Chancellor has made some very significant changes to the rules on R%D Tax Credits. SMEs can claim on qualifying research and development (R&D) expenditure will increase from 225% to 230%.
In addition, there will be an advance assurnace scheme for small businesses making their first R&D Tax Credit claim. This will give businesses the confidence that they are making a valid claim.
The new measures include one retrograde step as well- the measures restrict the qualifying expenditure for R&D tax credits so that the costs of materials incorporated in products that are sold are not eligible. Further guidance on this is expected in due course.
The changes take effect from 1 April 2015.