tax relief

Small Businesses Ignorant of Available Tax Relief

Small Businesses Ignorant of Available Tax Relief

An estimated 3.5 million UK small business owners have a “very poor” awareness of the tax relief on offer to them from the government, Direct Line for Business has reported today. Direct Line found that 18% of small and medium-sized enterprises had a “below average” understanding of the tax relief measures available to them, just a mere 6% said they had a “good understanding” of the incentives on offer. Over a third (36%) of the small businesses surveyed said they didn’t think, or didn’t know if, they were eligible for any business tax relief. Direct Line for Business’ Nick Breton discussed the findings: “This research highlights that there is a lack of awareness of the benefits available to small business owners which can ultimat... »

Autumn Statement: The Key Issues Affecting Small Business

Promises of re-structured business rates, further tax relief and support to exporters announced during 2014 Autumn Statement On Wednesday, December 3, the chancellor of the exchequer George Osborne disclosed 2014’s Autumn Statement – outlining the government’s latest plans for the UK economy. A number of entrepreneurs cited hopes for extension on current research and development tax credits, cuts on corporation tax, and more government support prior to the release of the statement and many of these requests were answered. Here, is4profit has pulled together the key elements from the statement that will impact the small business community. British Business Bank Osborne announced that the government will be expanding its British Business Bank; this will mean that the Business Bank’s Enterpri... »

Business Groups Welcome Chancellor’s Tax Relief for SMEs

Business Groups Welcome Chancellor’s Tax Relief for SMEs

Business groups have welcomed tax relief schemes announced in the Budget to help small firms, saying that the Chancellor has finally recognised the need to put small business at the heart of economic policy. However, they expressed continuing concerns about the UK’s Budget deficit and its impact on business activity. “After two years of economic downturn, the Chancellor has clearly recognised the need to place business at the heart of the Budget,” said British Chambers of Commerce (BCC) director general, David Frost. “Doubling the annual investment allowance, help with business rates, and allowing entrepreneurs to keep more of their gains will prove especially popular.” “However, the Chancellor could have done more to set out a clear plan for the reducti... »

Tax Relief for Research and Development

Relief is available on Research and Development expenditure, which means that a company can claim enhanced relief on qualifying costs against its profits. To qualify as Research and Development (R&D), an activity must be treated as R&D under generally accepted accounting practice, and fall within any guidelines issued by the Treasury. The Department of Trade and Industry (DTI) has issued guidelines on what it considers is treated as R&D for accounting purposes. What reliefs are available? Small and medium sized enterprises (SMEs) may claim: R&D tax relief – which increases the deduction to 175% of the qualifying expenditure (150% prior to 1 August 2008), or payable R&D tax credit – which allows companies who are not in profit to take the relief up front in t... »

SME R&D Tax Scheme Extension Introduced

UK small businesses can claim more tax relief on their research and development (R&D) costs following the expansion of the Government’s SME R&D tax relief scheme on 1st August. The SME R&D tax relief scheme has been extended so that SMEs can claim 175% relief on their qualifying expenditure on R&D for amounts incurred after 1st August – compared with 150% for expenses incurred before this date. The scheme has also been extended to include firms with up to 500 employees, and either turnover not exceeding €100 million or an annual balance sheet not exceeding €86 million. It was previously only available to firms with fewer than 250 staff. Small firms in any sector can claim the relief as long as they are seeking to achieve an advance in science or techno... »