TaxAdministrationNeedy SMEs lose out to ‘Catch 22’ R&D tax rules

Needy SMEs lose out to ‘Catch 22’ R&D tax rules

SMEs most desperate for cash are losing out to ‘Catch 22’ R&D tax rules, according to KPMG

Although legislative changes this August significantly boosted the number of
companies that can claim a cash rebate in the form of research and development
tax credits, businesses relying on this tax relief to stay afloat are now only
able to claim R&D tax relief rather than a much needed cash rebate.

‘There is a cruel irony in denying a business a lifeline that could save it
precisely because without such support, it will go bust,’ David O’Keeffe, head
of the KPMG R&D
tax credits team in the UK, said.

‘The reasoning behind these rules is that Europe does not want tax rebates
propping up struggling enterprises.

‘Companies should most definitely make sure that they claim these valuable
tax benefits but if they’re really in the last chance saloon, they may be out of
luck.’

Further reading:

Small businesses lose out on ?200m in tax relief

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter