Leading R&D tax relief advisors, R and D Tax Specialists Limited, are encouraging SME companies to fully review the funding benefits of the government’s R&D tax relief scheme.
According to latest HMRC statistics, the value of R&D tax reliefs has increased for larger companies, however, the number of SME claims has reduced significantly.
Garry Hague, Managing Director at R and D Tax Specialists, said: “Unfortunately, industry research suggests that reforms introduced by HMRC to tackle alleged abuse of the R&D tax relief scheme appear to be having unintended consequences for companies involved in genuine R&D, particularly SMEs. Following introduction of the latest HMRC measures, many companies are reporting that they have cancelled research initiatives, paused investment plans, and reduced skilled headcount as a result of adverse publicity around the scheme.
“Our message is: please don’t rule out the R&D tax relief scheme. Following a number of reforms introduced by HMRC over the past several years, it has now stabilised and remains a highly attractive financial incentive for company’s engaged in qualifying development work.”
Under the merged R&D expenditure credit (RDEC) scheme, each £100,000 of qualifying R&D spend will generate between £15,000 and £16,200 of tax relief, payable either as a cash refund, or credit against corporation tax.
For companies that are R&D intensive, where more than 30% of their costs are expended on R&D work, the claim value can be up to £27,000 for each £100,000 of qualifying R&D spend.
Garry Hague, said: “We understand that companies may be put off by HMRC’s changes to the scheme and it may appear complex to apply for this tax relief. We have over 16 years’ experience in the scheme and are happy to provide a no obligation assessment of a company’s viability for making a successful claim. We can also assist with all aspects of the work to compile and file the required documentation. Please contact us on 01327 317947 / info@randdtaxspecialists.co.uk“
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For more information, please contact:
Garry Hague: 01327 317947 / 07717 811 547 / garry@randdtaxspecialists.co.uk
Julie Parker: 01327 317947 / Julie.Parker@randdtaxspecialists.co.uk
Emma Brown: 01327 317947 / Emma.Brown@randdtaxspecialists.co.uk
