{"id":3817,"date":"2020-11-16T11:46:18","date_gmt":"2020-11-16T11:46:18","guid":{"rendered":"http:\/\/www.bainesjewitt.co.uk\/blog\/?p=3817"},"modified":"2020-11-16T11:46:21","modified_gmt":"2020-11-16T11:46:21","slug":"proposed-rd-cap-for-smes-published","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/proposed-rd-cap-for-smes-published\/","title":{"rendered":"Proposed R&#038;D cap for SMEs published"},"content":{"rendered":"<p>On 12 November 2020, the details of the proposed Small and Medium-sized Enterprise (SME) Cap, which is due to come into effect on 1 April 2021, was published.<!--more--><\/p>\n<p>This cap is on the amount of payable credit that qualifying, loss-making SMEs can receive through Research and Development (R&amp;D) in any one year, and will limit the refund to three times the organisation\u2019s total PAYE and National Insurance Contributions (NICs) bill.<\/p>\n<p>For many SMEs, they will meet the new principal tests, and therefore the cap will not be implemented.<\/p>\n<p>To lessen the impact of this cap on legitimate companies conducting R&amp;D, the Government has outlined the following guidelines:<\/p>\n<ul>\n<li>Companies can include related party PAYE and NICs, caused by the R&amp;D project, when calculating the cap.<\/li>\n<li>Companies that claim payable credit below \u00a320,000 will not be affected by the cap.<\/li>\n<li>Companies\u2019 claims, of any size, can avoid the cap if they meet the two tests.<\/li>\n<\/ul>\n<p><strong>The tests<\/strong><\/p>\n<p>Firstly, the organisation\u2019s employees must be creating, or preparing to, or actively managing intellectual property to meet the first test.<\/p>\n<p>Secondly, an organisation\u2019s expenditure on craft subcontracted to, or its external provided employees, by a related party must be less than 15 per cent of its overall R&amp;D expenditure.<\/p>\n<p><strong>For more information or advice on the SME R&amp;D Cap, contact our expert team today to ensure your businesses is meeting the necessary obligations. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 12 November 2020, the details of the proposed Small and Medium-sized Enterprise (SME) Cap, which is due to come into effect on 1 April 2021, was published.<\/p>\n","protected":false},"author":2,"featured_media":3819,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,38,24,30,56,31,60,110,25,4,26],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3817"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3817"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3817\/revisions"}],"predecessor-version":[{"id":3818,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3817\/revisions\/3818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/3819"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}