Finance

Are you missing out on R&D tax relief?

Three quarters (77 per cent) of small and medium-sized UK engineering firms have not heard of research and development (R&D) tax relief, according to a survey by specialist tax relief experts Catax.

And even among senior managers and owners at smaller UK engineering firms who had heard of R&D tax relief, more than a third (36 per cent) believed it was restricted to specialist hi-tech science or drug companies.

Meanwhile, 35 per cent of the engineering firms polled mistakenly believed that any eligible R&D activity must be successful for a claim to be made.

However, according to Catax this is not the case. The outcome of the R&D is irrelevant – what matters is the time and money spent developing the new technology, processes or techniques.

There were also 55 per cent of respondents who said they has spent time and money “developing a new product or process over the past three years.”

Mark Tighe, CEO of Catax, said: “British engineering firms are recognised around the world for the sheer depth of their innovation. But in far too many cases the tax relief available to the companies driving this innovation is being overlooked, often at great cost.

“This is especially the case with smaller engineering firms, which may not have access to the tax resource and expertise of their blue-chip counterparts. It’s crucial that engineering firms seek advice about the tax relief they are due for the valuable R&D they are carrying out, which will often amount to tens of thousands of pounds.”

 

This article was published in our Business Reporter Online: Unshackle yourself from tax.