Research & Development Claims on the up from Small Businesses

Businesses claimed almost £3 billion in tax relief on Research and Development (R&D) in the last year, official statistics reported.  But many companies are still missing out.  Is your company?

The latest figures show that almost 22,000 small and medium-sized enterprises (SMEs) made R&D tax relief claims last year.  Many of these were first-time claimants.

Since the R&D tax credit scheme was introduced in 2000-01, over £16.5 billion of tax relief has been claimed.  So the tax savings generated from a claim can be significant.

Craig Walker, Senior Tax Manager 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.  I would urge all companies to consider if they are eligible to make a claim”.

Am I eligible?

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

R&D tax incentives are not just for niche sectors – eligible companies can be in any sector, any size, and 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 discuss whether your company may be eligible to claim R&D relief, please get in touch with us.

More from our tax experts

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

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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 cw@hawsons.co.uk or 0114 266 7141.