Recent statistics from HMRC have revealed a 23 per cent increase in SME R&D tax relief claims, with the total number during the last year rising from 13,140 to 16,160.
Despite the growth, HMRC estimate that this figure is still less than 10 per cent of all eligible SMEs.
The ability to claim R&D tax relief is a major incentive to invest and innovate, particularly amongst small, up and coming businesses.
The Government’s lucrative R&D incentive scheme allows companies that invest in the research and development of new products, services and processes to claim a 230 per cent tax deduction on all qualifying expenditure. This includes wages, materials, overheads, software, training and utility bills, as well as the ability to claim cash back from HMRC.
Any loss-making SMEs that are yet to make a profit can also claim cash payments at 14.5 per cent – equivalent to £33.35 for every £100 invested in R&D.
Despite the major benefits, thousands of UK businesses continue to miss out on valuable savings by overlooking R&D tax relief.
Many question whether they can claim the relief, when in fact the answer is often yes, and it isn’t just the most obvious businesses which are eligible. Champion has secured R&D relief for companies in sectors such as admin and professional services, which invest heavily in software innovation.
According to the latest figures from HMRC, £1.75billion was claimed in R&D tax relief from April 2013 to March 2014 – the most recent period for which information is available.
A business must submit its claim no later than two years after the year end in which the money was spent. For example, a firm with an accounting year end of 31 March 2015 will have until 31 March 2017 to submit its claim.
Don’t miss out and contact our R&D expert, David Herd, today on 0161 703 2500 or email email@example.com to see how much your business could save.