Iain Rankin investigates why some companies fail to claim R&D tax credits and suggests that there has never been a better time to submit an R&D claim.
The UK government offers tax relief on research and development (R&D) projects to reward innovation by UK businesses. While data shows an accelerating upward trend in the number of claims, many potentially eligible firms fail to claim the tax credits they are entitled to.
Why are some companies still missing out?
Despite the potentially transformative nature of the relief to small and medium-sized enterprises (SMEs), there is a widespread concern by business owners about the applicability of claiming R&D tax relief. The three main assumptions that stop companies from claiming R&D tax credits are outlined below.