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UK tech firms still not claiming R&D tax credits

Research carried out by various R&D tax credit advisors shows that many UK firms are still not taking advantage of the government scheme.

In 2000, a scheme was set up to encourage UK SME tech firms to invest more in research and development. The government offered a form of tax relief that related to the funds spent on R&D. A separate, but similar, scheme was set up for larger firms in 2002. Both schemes were designed to make it easier for companies to innovate, so that everyone could grow at a faster rate.

The latest report from HMRC shows that claims have increased by an average of 25%. However, despite this, local research carried out by tax consultants demonstrate that many UK firms are still failing to take advantage of the deal. The number of firms not doing so varies across the country, with some consultants estimating that 40% of companies are still not claiming.

All kinds of firms are missing out. As an example, in Manchester 84% of companies have developed new products or introduced new business processes within the past 2 years. Potentially the vast majority of them, could have secured an R&D tax credit. Yet, only 48% of Manchester-based firms have tried to make this type of tax credit claim.

Research shows that this failure to claim is also common in other parts of the country. With this in mind, accountants in Prenton, Wirral and most areas are encouraging business owners to talk to them about how they can take advantage of this tax credit.

Posted by Peter
March 4, 2019
Research & Statistics

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