SME’s continue to miss out on ￡bn’s in valuable tax relief
Gary Johnson
Owner of FrontGuyGary Entertainment - Director @Nantwich Town Football Club
So, we have entered the 21st Year of the 21st Century and a government initiative set up to reward Britain’s army of SME’s also reaches a 21st milestone.
Research & Development Tax relief was set up in 2000 to assist innovative limited companies in the development of new or, the improvement of, Product, Process, Systems or Software, Materials and Devices and the costs associated with it. Recent surveys suggest however, that in that time SME’s have missed out on an estimated ￡89bn of rebates and therefore business funding by not claiming for something that they are entitled to.
WHY?
- · Perhaps, it’s lack of awareness; it’s not something you will see advertised on the side of a bus.
- · Lack of understanding: “Oh we don’t do R&D in this business, it’s just what we do”
- · Or is it, the belief that you have to be a very clever person in a white coat in a lab, to be undertaking R&D activity within your business….. Not So!
Statistics suggest that there are 1.5m limited SME’s in the UK that have undertaken R&D activity within the last two years and yet, the total number of claims made in the year up to 30th June 2020 was less than 55k* For those companies that did make a claim however, the average benefit was in excess of ￡53K*. Have you checked your businesses eligibility recently?
SME’s remain the lifeblood of the economy, especially in today’s uncertain world and the continuing challenges of the Covid-19 pandemic. Government recognizes that as a nation, we have a reputation for innovation and will continue to encourage investment in Research & Development with its importance, post Covid, being greater than ever.
So, for a Risk Free Assessment to find out if your business qualifies for Research & Development Tax Relief, why not contact me via LinkedIn today. https://www.dhirubhai.net/in/garyjohnsontaxrelief/. Alternatively, this short video below may also provide you with the answer.
*Source HMRC Research & Development Tax Credits Statistics September 2020
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3 年I have some thoughts on a project that might be R&D, when I am ready I will be in touch.
Award-winning CPD for schools and education settings | Senior Marketing Executive at The National College
3 年Great article Gary Johnson. Very insightful and important for businesses to be aware of what they may be entitled to.
We cannot solve our problems with the same thinking we used when we created them
3 年I think this still suffers from "white coat syndrome" when it's clearly applicable to a lot more businesses out there. great article Gary Johnson ??
Showing Business Owners how to Define Their Offer & Brand and Build Effective Routes to Market. ? Marketing Mentor ?Generative AI Expert - Cumbrian in Exile-F1 Fan-Beatles Fan
3 年I think points one and two are especially relevant Gary