Figures released by HMRC have revealed three sectors continue to dominate and reap the majority of R&D Tax Credit benefits; ‘Manufacturing’, ‘Professional, Scientific & Technical’ and ‘Information and Communications’. However, in light recent announcements by the Chancellor to support SMEs focusing on research and development, it is hoped that more UK companies across various sectors will be driving innovation and be in a position to apply for more R&D Tax Credit relief immediately.
The UK Government has increasingly placed greater emphasis on R&D as they want to see companies innovate. Given the current challenging economic market due to COVID-19, we would urge all companies to review the current innovation they are applying throughout their processes, products, services or simply something they are attempting to improve on, to ensure they get what they deserve in terms of R&D Tax Credit support from Government.
Companies need to consider all options in order to recover; and R&D Credit Tax relief has the potential to help many businesses across the UK. It is clear the Government are placing huge importance on innovation as a key driver for the recovery of our economy, with many businesses diversifying to play their part. The monetary value of R&D tax credits to even the smallest companies could run into tens of thousands of pounds, which could benefit cash flow enormously at this time.
There have already been successful claims across so many sectors but the percentage is low, such as retail, accommodation and food, real estate, construction, arts and entertainment, education, transport and utilities – we believe there is so much more potential to grow the level of claims across these industries.
Most companies will find some of the MANY processes they are already carrying out are eligible for research and development (R&D) Tax Credits. Given the COVID 19 emergency that is impacting every aspect of our lives, and the need to get cash into your business, there is no better time to investigate if your company is eligible for R&D Tax Credits.
We would encourage all firms not to disregard the potential of claiming for R&D Tax Credits, to which they are entitled. To learn more about R&D Tax Credits and to find out how much you could receive please contact us.