First introduced in 2000, Research and development (R&D) tax credits were put in place to encourage innovation and increased spending in R&D for SMEs. In the 18 years since the initiative has been in place, over 240,000 claims have been made – adding up to £21.4bn. Over £3.7 billion in R&D tax relief was claimed in 2015-16, an increase of 25% on the previous year, and the total number of R&D tax relief claims and the amount claimed has continued to rise each year since the scheme was introduced.
With over 53% in claims coming from the manufacturing and information and communications industries, these sectors have seen the largest number of claims made. But who should people consult when it comes to making a claim? R&D Tax Claims Limited, founded by Mark Evans, was set up to provide a service dedicated to the manufacturing and engineering sector.
As a chartered accountant, already operating a successful accountancy practice in the West Midlands, Mark recognised that many companies involved in R&D were unaware of the Corporation Tax they could reclaim through the HMRC scheme. So in early 2009 he started getting involved in R&D tax relief.
Now based in Shrewsbury, Mark has helped companies collect more than £30 million from the Government’s tax relief scheme, a plan designed to encourage companies to invest in Research and Development.
With the uncertain impact of Brexit looming large, what can industries expect from the fallout?
Some form of change is likely to take place through the course of Brexit negotiations. On a positive note, the Government’s pledge to support innovation through R&D tax relief has been evident, as has its wish to reduce Corporation Tax rates.
Mark admits the landscape could look very different in the future
“UK businesses are undoubtedly going to need all the support they can get. It’s likely that the programme could undergo significant change in the next few years. But there are steps that businesses can take to prepare for Brexit:
- Get claims in while R&D Tax Credits are so generous
- Use a professional company to submit your claim
- Remain committed to increased innovation
The UK competing with other European markets will also mean competitive tax rates and incentives will become increasingly important for R&D’s big hitters.”
While it’s clear that the impact from Brexit has yet to be seen, taking advantage of schemes like R&D tax relief will be more important than ever to increase competitiveness in an ever-changing marketplace.
Whatever happens, looking to specialists like R&D Tax Claims Limited for help in deciphering something so complex is surely a must. If you think your company may be eligible for a claim then contact us on hereBack to News