UK firms missing out on R&D tax relief

Posted on 16 Nov 2017 and read 361 times
UK firms missing out on R&D tax reliefThe latest statistics released by HMRC (www.gov.uk/HMRC) show an increase in the number of R&D tax credit claims submitted by UK businesses, although many eligible manufacturing and engineering firms are yet to make a claim.

However, UK manufacturing and engineering businesses did lead the way in the total number of R&D tax credit claims, making up almost 30% of those submitted in 2016-17.

Mike Price, a director of Sherington-based MPA Group, believes that this continued growth in claims is a result of a conscious effort towards innovation, which is once again high on the business agenda.

He says: “While the continued growth reported by HMRC is encouraging, it’s also important that businesses continue to invest.

"For many manufacturing and engineering-led businesses, it is often hard to capture the activity that qualifies for the R&D tax credits, but they can deliver a vital cash injection to enable companies to expand their premises, recruit additional staff and invest in new equipment.”

The latest HMRC figures show that the average claim value is £109,500. Over the last 12 months, MPA has delivered more than £31 million in tax savings to UK businesses, of which £11 million was to manufacturing businesses.

Mr Price added: “When we first speak to a client, we often find that there are misconceptions regarding exactly which activity qualifies for R&D tax credits.

"Our team of experts not only have an in-depth understanding of the HMRC process, but also a thorough understanding of the manufacturing and engineering sectors, to ensure that businesses can maximise their R&D tax credit claim.”

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