R&D Tax scheme improvement - Chancellor ups incentive by 5%
All indicators currently point to the Government's R&D (Research and Development) Tax Claim initiative being successful in focusing UK Manufacturing on innovation. Acknowledging this in his Autumn Statement the Chancellor of the Exchequer stated that from 1st April 2015, the rate that can be claimed by SMEs against qualifying R&D expenditure will increase from 225% to 230%.
In addition the Government will launch a consultation in January 2015 on the issues faced by smaller businesses when claiming R&D tax credits. The government will introduce an advanced assurance scheme for small businesses making their first claim and develop new guidance for R&D tax credits.
Mark Evans, Managing Director of R&D Tax Claims Limited, welcomes the announcements, "The additional 5% will make a significant difference to any SME undertaking R&D; this is particularly the case for the many West Midlands SME businesses that are not claiming for what is rightfully theirs.
"It will be interesting to see the outcome of the consultation process in January as we are very aware, from our own research, that perceptions of the whole claim process are often misguided. The advanced assurance scheme for new claimants and revised claim guide lines will hopefully address the results of the consultation and further encourage businesses to participate."
Figures released by HMRC, earlier this year in its annual 'Research and Development Tax Credit Statistics' illustrated 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.
Out of 12 Regions (SE and London combined), the West Midlands had the fourth highest claims awarded with 1,090 claims and £35M claimed. Mark Evans believes the figures, although encouraging from a West Midlands position, are just scratching the surface with up to 90% of eligible companies not claiming back what is due to them.
Mark Evans' R&D Tax Claims Team consists of consultants with manufacturing and engineering backgrounds - if you have any questions please call 01902 783172.
Mark Evans, R&D Tax Claims Limited
Ref: RD-019-A
Issue date: November 2014
Contact David Wickham davidw@jonoliver.com for digital images or go here http://news.cision.com/R&DTax
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 (North) Limited, based in Warrington, was set up in late 2014 to provide matchless and bespoke R&D tax expertise to UK SMEs located in the North of the UK. This follows the success of its parent company, R&D Tax Claims Limited, which was set up in 2012 and is located in the West Midlands.
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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