R&D good times reflected in 30% reclaims boost - West Midlands' SMEs claim £35M
Figures just released by HMRC in its annual 'Research and Development Tax Credit Statistics' illustrate a 30% increase in claims by SMEs over the previous year's (2011/12) figures. SMEs took up the initiative last year with 13,000 claims (up to March 2014) clawing back over £600m in tax reclaims against corporation tax.
From 12 regions, London and SE England combined came in as the high claimers with 4,600 claims amounting to £265M with the West Midlands following up in fourth place with 1,090 claims and £35M claimed. The significant increase is thought to be attributable to improvements made to the scheme which increased the rate of enhancement from 100% to 125% effectively allowing relief of 225% against R&D activities.
Mark Evans, Managing Director of Wolverhampton based R&D Tax Claims Ltd, believes the figures, although encouraging from a West Midlands position, are just scratching the surface. "The fourth position of the West Midlands in terms of claims made is encouraging but I believe related to the number of manufacturing businesses in the region it could be higher. From our experience we are well aware of many SMEs still being cautious about taking the initiative anywhere beyond an end of year discussion with the accountant.
"Perceptions exist which cause hesitation to proceed including the time required to complete the process and, potentially the biggest myth of all, the risk that HMRC enquiries create unnecessary difficulties. In reclaiming over £16M for UK companies since the initiative was introduced and with 100% success rate I can verify that providing the process is understood then it's very straight-forward. The figures in this report show that HMRC clearly wants and encourages SMEs to take the initiative."
Mark Evans' Team consists of consultants with manufacturing and engineering backgrounds. "The Team is solely focused on R&D tax relief for SMEs and we manage the claim process from the start through to final submission leaving our clients to run their businesses as usual."
Read the report here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/342453/Research_and_Development_Tax_Credits_-_August_2014.pdf
Ref: RD-012-A
Issue date: 21 August 2014
Media:
Contact David Wickham davidw@jonoliver.com for digital images see links below.
Issued by:
Jon Oliver Communication Ltd.
+44-(0)1902-757115 email: davidw@jonoliver.com
Further information:
R&D Tax Claims Ltd
Pamela Cunliffe, Sales and Marketing Manager
e-mail: pamela@rdtaxclaims.co.uk
tel: 01902 783172
Website: www.rdtaxclaims.co.uk
Notes to editors:
R&D Tax Claims Limited assists SMEs to claim back extra tax relief against funds committed to process and product development. The Government-backed R&D reclaim initiative can be applicable to a wide area of activities carried out by businesses on a day to day basis.
The R&D Tax Claim Team works with businesses to help them identify elements that are quantifiable as R&D. Since 2009 the Team has been responsible for securing claims in excess of £16m for SMEs and has a 100% success rate.
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