Preventing abuse of R&D tax relief for SMEs

Issue date: 29/03 2019
Closing date: 24/05/19

The Treasury is consulting on changes to research and development (R&D) tax reliefs, first announced at Budget 2018, which are intended to prevent abuse of the small or medium sized enterprise (SME) scheme. The cap will be three times the company’s total PAYE and NICs liability for that year and will be implemented from April 2020. To prevent abuse from groups making small but numerous claims at or below the defined threshold, the government intends to allow only one ‘below threshold’ payable tax credit claim per year for any given group of companies under common control.

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