The Productivity and Innovation Credit (PIC) scheme was a broad tax incentive that gave businesses enhanced tax deductions – and, for smaller businesses, an optional cash payout – on spending across six activities, including the acquisition of IT and automation equipment, staff training, research and development, and the registration of intellectual property. At its height it offered enhanced deductions of up to 400% on qualifying expenditure.
The PIC scheme has since lapsed – it applied up to the Year of Assessment 2018 and is no longer available for new claims. Businesses searching for 'PIC' today are usually looking for the current equivalent.
Its successor is the Enterprise Innovation Scheme (EIS), introduced in Budget 2023. Like PIC, the EIS provides enhanced tax deductions (and, in limited cases, a cash conversion option) for innovation-related activities such as qualifying R&D, registration of intellectual property, and training aligned to approved frameworks. The qualifying activities, rates and caps differ from the old PIC, so claims should be assessed under the current EIS rules.
Apexia can help you identify which of your activities qualify under the Enterprise Innovation Scheme and ensure the enhanced deductions or payouts are claimed correctly.