Small Businesses: Technology

(asked on 3rd November 2017) - View Source

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.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 13th November 2017

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.

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