Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 October 2017 to Question 106492, on small businesses: technology, how small businesses can use research and development tax credits to support adoption of Industry 4.0 technologies.
Research and Development (R&D) tax credits are a key element in the government’s objective of a tax system that supports productive investment. They are available for any activity aimed at achieving an advance in overall knowledge or capability in a field of science or technology.
To further support Small and Medium-sized Enterprises (SMEs), the government offers them more generous tax relief compared to large companies. Including the standard 100% corporation tax deduction for R&D spend, R&D tax credits are worth 44% of the cost of R&D for a profit-making SME and 33% for a loss-making one.
The government is committed to ensuring SMEs are able to access R&D tax credits. Tailored guidance specifically for SMEs can be found at: http://www.hmrc.gov.uk/gds/cird/attachments/rdsimpleguide.pdf.