Is my company an SME?
This simple question is actually not so simple. The criteria used for R&D tax relief are the same as for Transfer Pricing and not the normal UK Corporate Tax definition.
In broad terms, to qualify as an SME, a company must have less than 500 staff, and less than either of 100m Euros of assets or 86m Euros turnover.
However, this is assessed on a group-wide basis as per the EU definition described here.
There is a useful calculator tool developed as a collaboration between the European Commission, the Walloon Union of Enterprises, Belgium and the agency for administrative simplification in Wallonia, Belgium. Note that this is not provided by us and no responsibility is taken for the result of it.
This tool will let you calculate if you are an SME for R&D tax relief purposes.
If you would like more information on how we can assist you with determining if you qualify under the SME rules, please contact us
