UK SME’s missing out on R&D tax relief
Mar 30, 2016
A report published by HMRC on the R&D tax relief scheme for 2015/16 shows some surprising results.
Statistics reveal that even though there was a 23% increase in SME claims during 2013/14, only a tiny percentage of the UK’s 5.4 million SMEs are making claims. Although not all of these companies would qualify, it’s worrying to think that there could be thousands, if not millions of businesses missing out on their chance to benefit from this immensely valuable form of tax relief.
It’s clear that there’s still a North/South divide in the claims made. In total, there were 2,255 claims made across the North East and North West compared with 7,015 in London, the South East and South West. With this 4,760 claim ‘gap’, it’s apparent that greater awareness of R&D tax relief is needed in the North if companies are to compete on a level playing field with their savvy Southern counterparts.
Manufacturing (31%), Professional, Scientific and Technical (19%) and Information & Communications (26%) sectors continued to claim the highest proportion of the relief. What could be argued is that greater awareness of the eligibility is required. R&D tax relief is open to all sectors and many businesses are unaware of this.
Call us today if you feel that you could be missing out!