A guide to R&D tax relief for North West businesses

Recent data published by HMRC suggests businesses in the North West could be losing out on R&D Tax Credits. Is your business one of them? Read on to find out more about R&D tax credit relief.

According to these latest HMRC figures, in 2021-2022, £44.1bn of tax relief support had been claimed (rising by 8% in the last year), but only a portion of this was claimed by NorthWest registered businesses. The North West had the third largest number of claims but is the fourth largest region based on the amount claimed. This means many businesses in the North West could be missing out on their share of R&D tax relief.

A majority of the claims are still concentrated in companies with a registered office in London or the South East, which amounted to 37% of the total amount claimed for 2021-22.

What exactly is Research & Development Tax Relief?

R&D tax relief is a tax incentive introduced by the government in 2000. It was brought in to encourage companies to innovate through research and development. If your company is investing in research and development, you may be eligible for R&D tax credit. 

Recently, there have been many R&D tax credit changes, which has left some businesses hesitant to make claims. In fact, it seems more business owners might be consulting non-factual R&D tax credit calculation tools and be concerned over R&D tax credit restrictions. The only true way to understand if you are eligible for relief is to speak to a professional.

How losing out on R&D tax relief can impact businesses

Many businesses are missing out on this generous tax relief from R&D tax credit in 2023 because they incorrectly believe they are not eligible. A common misconception is that these tax reliefs only apply to science and technology companies, or those with specialist research and development departments.

This can impact business because those who do not claim this relief are more likely to be less innovative and lose out on money they are potentially owed. This funding can help develop new technologies, which is important when becoming a market leader. This may make your company less competitive when compared to other businesses that do claim relief.

Furthermore, in the current economy, it’s becoming more important for businesses to adapt so they can pay their workers fairly. This means more skilled workers and improving their team through research and training. All of this tax relief can then go directly back into your business, no matter what sector you are in. Curious about who we’ve helped claim relief? Explore our R&D tax relief example shere.

Any company can take advantage of these generous reliefs

We have successfully claimed generous R&D tax credit relief for numerous companies, as diverse as a manufacturer who created a new type of false ceiling, a startup who created a new app and a retail client who installed a new software system. 

In fact, any company can take advantage of these generous reliefs, provided they seek to advance their knowledge, improve a service or product or solve uncertainties in a process. If a company is undertaking any of these processes, we strongly recommend that they investigate whether this government incentive is available and get in touch with us today.

How to claim Research & Development Tax Relief

If you’re curious about how to calculate R&D tax credit, Alexander & Co can help. We can assist you in claiming R&D tax relief for the past two accounting periods, so time is of the essence to ensure you do not miss out on any opportunities.

If you’re one of the many businesses missing out on R&D Tax Relief, our specialist accountants can help. Visit our R&D Tax Credit page for more information, or contact us below to get started. Our specialist team will guide you through the process, keeping you updated every step of the way.

Alternatively, you can call us on 0161 832 484, and we’d be more than happy to help.