To start with you need to be a UK limited company and subject to UK corporation tax to qualify for the SME scheme. A company does not have to be paying corporation tax it can be in a loss position and still make a claim. You are classed as a small or medium sized enterprise (SME) if you, and your connected companies, employ fewer than 500 employees with either an annual turnover under €100 million or a balance sheet under €86 million. You cannot claim SME tax relief on a project if: Your R&D is subsidised You have applied for, or are receiving, State Aid for your R&D projects You are subcontracted by a larger company You are no longer a “Going Concern” In these cases you may be able to claim under the RDEC scheme. Talk to us to find out more.