SMEs encouraged to claim tax rebates

Small businesses are being urged to claim cash rebates on the back of a recent change in legislation.

Market watcher KPMG has identified that more small firms will now be able to claim a research and development (R&D) tax rebate following the regulatory adjustment.

In order to qualify for the credit - which gives enterprises £24 back for every £100 spent on R&D - the small business must have fewer than 500 employees and make a loss.

Head of R&D tax credits at KPMG UK, David O'Keefe, said: "When hunting for cash down the back of the corporate sofa, businesses would do really well to remember R&D tax credits."

"Companies should most definitely make sure that they claim these valuable tax benefits."

He added that, due to the challenging economic environment, for many businesses it could be too little, too late.

Last month, the European Investment Bank announced £4 billion in the way of support for the UK's business start-up sector.