I think the issue of TAX CREDIT relief on Research and Development needs to be addressed.    Currently there are two levels depending on whether the company is an SME or LARGE.However, in the small print of the HM Rev and Customs guidelines it goes on to state that sub-contracted R&D will only be eligible for the lower rate of credit, as  given to large companies.

My point is that the vast majority of SMEs do not have the means to support internal R&D. Most small companies incur consultancy fees, or testing fees, clinical trials, etc. all of which are external.
Last year my company spent over £330,000 on R&D, of which £140,000 was external ( a similar amount was spent in 2007)..  If the Government is serious about support for SME’s, then the full tax credit would result in a lower corporation tax bill.

This would help our industry sector (Medical) as our R&D is probably greater than other market sectors because of the life safety implications surrounding the medical sector.