North West businesses could be losing out on R&D Tax Relief according to HMRC statistics
Recent data published by HMRC suggests businesses in the North West could be losing out on Research & Development Tax Credits. Is your business one of them?
According to these latest HMRC figures, in 2017-18, £4.28bn of tax relief support had been claimed – but just 6.4% of this was claimed by North West registered businesses. This means businesses in the North West claimed just £275m in this period and many companies could be losing out on their share of R&D Tax Relief.
The claims are concentrated in companies with a registered office in London, the South East or the East of England, amounting to 61% of the total amount claimed for 2017-18. The North West also fell behind the West Midlands for the total amount of tax relief claimed.
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 a tax deduction of up to 230% on the qualifying amount spent.
Any company can take advantage of these generous reliefs
Many businesses are missing out on this generous tax relief as 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.
We have successfully claimed generous R&D Tax 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, providing they seek to advance their knowledge, improve a service/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 contact us today.
How to claim Research & Development Tax Relief
You can claim R&D Tax Relief for the past two accounting periods, so time is often of the essence, to ensure you do not miss out on any opportunities.
If you’re one of the many businesses missing out on Research and Development Tax Relief, our specialist accountants can help. Visit our R&D Tax Credits page for more information, or contact us below 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 4841 and we’d be more than happy to help.
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