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