What is the rate for the SME scheme?
SMEs (small and medium sized enterprises) can claim R&D tax credits whether they are at a profit or a loss. The current rates are as follows:
- Enhanced deduction rates are 86% of qualifying expenditure
- Payable tax credit rates for loss making SMEs are 10% of the surrenderable loss
- Corporate tax rates for profit making SMEs are dependent on the accounting year of the claim being made
This helps reduce the company’s tax bill or gives a cash payment if the company is loss-making.
