sme vs rdec

A company's status for research and development (R&D) tax relief is dependent on its staff count, turnover, and gross assets. This accounting data determines whether a company falls into the SME

A company not treated as an SME for R & D tax relief will be treated under the research and development expenditure credit (RDEC) scheme. The RDEC scheme rate of relief is less generous than the

Research and development (R&D) tax relief is more generous for SMEs as they can claim up to 33% of their R&D costs, whereas companies under the RDEC scheme can only receive R&D tax relief

The seven-step method of calculating the RDEC credit offsets any tax owed to HMRC before paying the net credit. Offset against any corporation tax liability The gross RDEC at 13% is offset against