R&D tax credit process is too complex, reports says
Recent changes to the application process for small firms looking to obtain research and development (R&D) tax credits has done little to amend a "cumbersome and expensive" process, according to research.
The Institute of Chartered Accountants in England & Wales (ICAEW) said the tax credits may not be as effective in persuading smaller firms to invest in R&D as larger companies.
Smaller firms were less likely to apply because they were not confident of being approved, the ICAEW said.
A spokesman added:
"The research shows that the scheme is not effectively incentivising smaller companies to invest in R&D and needs reforming."
