Many West entrepreneurs are missing out on Government-funded help with research and development costs, with just one in 20 claiming the tax relief in the region and 15% unaware it exists.
Research and development (R&D) tax relief is potentially available to any business carrying out technological advancements in products or processes, although this can cover a wide range of activities.
The recent Draft Finance Bill spelt out plans by the Government to increase the relief to 225% from April 2012, meaning for every £1 spent on R&D, eligible companies can claim back £2.25 in tax relief.
But research by accountants RSM Tenon, which covers Bristol from its Swindon office, shows that almost 15% of entrepreneurs do not know about the relief and so could potentially be missing out on significant reductions to their company tax bill. Just 5% of entrepreneurs surveyed were claiming the relief in the region.
RSM’s regional head of tax Nick Parker said: “There is a popular misconception that R&D tax relief is only available to scientific companies – it’s not. The activities that qualify are wide ranging and the increase announced by the Government now means that this is a very attractive tax relief. It is disappointing that so many entrepreneurs aren’t aware that this relief exists, as it could provide a welcome boost to many UK companies in the current economic climate.”
