Haines Watts accountancy believe that businesses in the UK and Wales may be missing out on Research and Development relief, which could be worth more than the actual cost of R & D. The government provide the relief for companies who are liable to pay Corporation Tax, and take part in the development or improvement of goods or services. According to advisers at Haines and Watts, a large number of companies aren’t aware of the tax relief, or simply don’t have the time to spend making an application.

The government increased the tax relief available during the budget, with the new amounts being applicable from 1st April 2011. For costs of R & D arising on 1st April 2011 or after, Small and Medium Enterprise can claim 200 percent tax relief, which will increase to 225 percent from 1st April 2012. The government believe that private enterprise is crucial to the growth of the economy, and have increased tax relief to encourage research and development in the UK and Wales.

One of the partners with Haines Watts in South Wales, Stephen Lucey said:

“However it is clear to us that many companies are either so busy doing their research that they don’t have the time to claim, or are simply not aware that the scheme applies to them. They are delighted when we show them the benefits- even more so when it’s up to two years after they have spent their money.”

Making a claim for R & D relief could be time consuming, but it will minimise your tax bill legitimately.

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About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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