Research & Development (R&D) tax relief experts Catax have carried out a survey to find out what SME owners, directors and senior managers know about this valuable form of tax relief.
The Catax survey uncovered some surprising results:
- The survey revealed that over half of UK SME Owners and Managers have never heard of R&D tax relief – and yet many of these are eligible to make a claim
- Nearly half of SMEs mistakenly believe that R&D activity must be successful and integrated into a business in order for a claim to be made. However, very little realise that failed projects also qualify.
- And while three in five of respondents said they have developed new products or services, or implemented new business processes within the past two years, a shocking 9 out of 10 of UK SMEs hadn’t claimed, according to the HMRC figures**
This on-going lack of awareness surrounding R&D and what qualifies when making a claim is ultimately costing businesses hundreds of millions of pounds in tax relief each year. The message from Catax is clear; make sure you don’t contribute to this ever-growing number!
With the Autumn Budget announcing continued investment of £2.3bn in R&D, this form of tax relief is the government’s incentive of rewarding these innovative companies.
This includes companies which are developing new, or improving existing products, processes, services, devices and materials or advancing the state of knowledge in their sector.
The team at Catax are experts in R&D tax relief, Capital Allowances and Patent Box. They have been working with WNJ to raise awareness of these important issues, to add value to their clients and to build new relationships.
Their in-depth knowledge in this specialist area allows accountants to identify the biggest amount of relief possible for their clients.
To date they have uncovered over £150million of tax relief, with an average R&D client benefit of £43,000 per claim.
Call Catax now on 0300 303 1903 or email firstname.lastname@example.org, quoting WNJ. To find out more, you can also contact WNJ on 01772 430000.
- Catax commissioned UK survey consultants, Censuswide, to interview 500 SME Owners, Directors or Senior Managers in March 2017.
** Source: HMRC Research and Development Tax Credits Statistics – September 2016