As well as revealing that R&D tax credits are to climb by 200 per cent this year, George Osborne also used today's UK Budget address to confirm that the process for securing the credits is to be restructured and simplified.
In the official document release at the Budget's close today, the government revealed:
"Following consultation on the effectiveness of the schemes, the Government will increase the SME scheme rate of relief to 200 per cent from April 2011 and 225 per cent from April 2012, subject to EU State aid approval.
It will simplify the schemes, including removing the Pay As You Earn (PAYE)/NICs cap on the amount of payable credit that can be claimed, removing the minimum expenditure rules and allowing relief through the large company scheme for subcontracted activity which forms part of a wider R&D project."
The Government will publish a response to the consultation in May 2011.