HMRC ran two sets of consultation about scheme improvements. One was in November 2010 and the second in June 2011. As a result they have announced the intention to bring forward improvements to R&D tax relief in the 2012 Finance Bill. For the small or medium enterprise (SME) scheme only: the rate of additional deduction for a SME company will be further increased from 100 per cent to 125 per cent from April 2012, giving relief of 225 per cent in all; (previously announced) to allow the increase in the additional deduction for SMEs while remaining within state aid limits, the rate of payable credit for SMEs will be reduced to 11 per cent, and vaccine research relief for SME companies will be withdrawn; the rule limiting the amount of payable R&D tax credit to the amount of a company’s PAYE/NIC liability will be removed; and, the existing definition of when a company is a “going concern” will be clarified to confirm that companies in administration or liquidation are excluded from relief. For the SME and large company schemes: the requirement for minimum expenditure of £10,000 a year will be removed; and the scope of the definition of an “externally provided worker” will be widened. In essence these all will come into effect from 1 April 2011. How will you benfit from this? Contact us to find out.     Source:...