The Treasury has launched a research and development (R&D) tax reliefs review to look into merging the two R&D schemes.

This consultation will last two months from 13 January to 13 March 2023, and will focus on different ways to design and implement a single R&D scheme.

The simplified scheme would replace the two relief schemes currently in place - the small and medium enterprises (SME) R&D relief and the research and development expenditure credit (RDEC).

In his Autumn Statement 2022, Jeremy Hunt pledged to work with industry to understand how to provide further support for SMEs claiming R&D relief.

According to the Treasury, a scheme based on the RDEC for SMEs would give smaller companies clearer information on the levels of support available to them.

The Government is also inviting comments on the design of a single R&D tax relief scheme until 13 March, particularly from businesses, representative bodies and accountants with experience using existing R&D schemes.

Victoria Atkins MP, financial secretary to the Treasury, said:

"The Government would like a system for supporting R&D which drives innovation and growth, is simple to use and administer and underpinned by the effective application of taxpayers' money."

Talk to us about your R&D tax credits.