Businesses claimed over £3.5 billion in tax relief on Research and Development (R&D) in the last year, official statistics reported.  This represents an increase of £575 million on the previous year.  But many companies are still missing out on this generous relief.  Is your company?

The latest figures show that 39,960 claims were made last year, up from 26,255 in the previous year.  Many of these were first-time claimants.

Since the R&D tax credit scheme was introduced in 2000-01, over £21.4 billion of tax relief has been claimed.  So the tax savings generated from a claim can be significant.

Craig Walker, a tax specialist at Hawsons commented: “Claims for R&D tax relief are often overlooked by businesses.  It’s good to see that claims are on the increase, especially from small companies, but many businesses are still missing out.  I would urge all companies to consider if they are eligible to make a claim and to ensure that they are getting the full value that they deserve”.

He was concerned that the figures show R&D claims were concentrated in companies in London and the South East when “vast numbers of companies across the north of England and in the Midlands are undertaking R&D activities that are eligible for tax relief”.  This means that some regional businesses could be missing out on a cash boost.

Am I eligible?

Many companies carry out eligible R&D activities without realising that this work qualifies for additional tax relief.

R&D tax incentives are not just for niche sectors – eligible companies can be in any sector, any size, and can even be loss-making.  A common misconception is that R&D incentives are only for those who undertake scientific research in a laboratory, but this is certainly not the case.

How we can help

We have extensive experience of making successful R&D tax relief claims.

If you would like to arrange a free meeting with one of our R&D specialists to discuss whether your company may be eligible to make a claim, please get in touch with us.

 

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Craig Walker is a senior tax manager at the firm. He advises on all matters tax related, both corporate and personal, including income, capital gains and inheritance. For more details and advice, please contact Craig on [email protected] or 0114 266 7141.

Our offices

Pegasus House, 463a Glossop Road, Sheffield, S10 2QD

5 Sidings Court, White Rose Way, Doncaster, DN4 5NU

Jubilee House, 32 Duncan Close, Moulton Park, Northampton, NN3 6WL

Northampton

01604 645 600

Contact

Get in touch
All content © 2018 Hawsons

Pin It on Pinterest

Share or print...

Shares