Pronovotech Ltd

The Finance Acts of 2007 and 2008 contained measures to increase the tax benefits available under the R&D tax relief scheme for Small and Medium-Sized Enterprises (SMEs).  However, since the incentives are regarded as a State aid, these increases required the ratification by the European Commission before they could be given effect.

The changes increase the additional deduction from taxable profits for SMEs from 50% to 75%, whilst doubling the size criteria for companies to qualify for the SME relief instead of the less generous large company scheme from 250 to 500 employees and either turnover of €50 million to €100 million or total assets from €43 million to €86 million.

HMRC has now announced that the date that the new rates and limits will come into effect will be 1 August 2008.  This means that, from this date, more companies will be able to take advantage of the valuable benefits available under the SME scheme of R&D tax relief which, at up to 24.5% of the qualifying expenditure on R&D, are even higher than before.

About Pronovotech

Pronovotech is a Cambridge-based firm specialising in helping companies from start-ups to established multinationals optimise their R&D tax relief claims, combining a wide technology background with in-depth knowledge of the tax scheme.  From advice on discrete aspects of the scheme through to a fully managed claim project, Pronovotech is focused on providing superb quality, excellent service and value for money. 

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Contact Richard Lews on 01223 235500 or e-mail richard.lewis@pronovotech.com.