SME Tax Relief – new cap on repayable credits from 1 April 21
Following extensive consultation, the Government has confirmed the design of the PAYE cap that will apply to SME repayable tax credits. The legislation is effective from 1 April 2021. Summary In summary, you should not be affected if your payable R&D tax credit is less than £20k per year (plus 300% of the company’s total PAYE/NIC liabilities). Companies that may be affected are those with total PAYE/NIC liabilities that are disproportionately small compared to the company’s repayable R&D tax credit.
Angela Browning
6 January 2021