Commenting on the news, Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants (ACCA), said that small business in particular struggle to get their heads around the process of applying for R&D tax credits.
"You have to produce a lot of documentation to justify why it's innovative. It it a difficult area for small businesses," he said.
"The government is positively encouraging the tech sector to innovate, and clearly anything that will bring down costs for such businesses has to be welcomed."
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