Research carried out by RSM Tenon, accountancy firm revealed that just under 25 percent of entrepreneurs in Staffordshire aren’t claiming all the tax relief that they are entitled to. A fifth of companies in the area are not aware that they can claim tax relief from things like Research and Development carried out by their company.
The data was revealed in the Business Barometer, carried out every quarter by RSM Tenon. The research conducts a survey of high-level management in Small and Medium Enterprises. The RSM Tenon’s Tax Director, Festival Park, Ann Diggins said:
“There is a popular misconception that R & D tax relief is only available to scientific companies-and it’s not. The activities that qualify are wide-ranging and more SMEs in the West Midlands should be taking advantage of them.”
According to the Draft Finance Bill, the government is planning to increase the R & D tax relief up to 225 percent. The increase will be introduced from April 2012, with some alterations to the rules of the scheme designed to encourage competition within the tax system in the UK. In April last year, the tax relief for R & D was increased so that for every £1 spent by a company on activities in research and development, £2 could be claimed back in tax relief.
Diggins further adds that more must be done to make these companies aware that the tax relief exists, providing a much needed boost to UK companies. The tax relief may be claimed by any company which produces advancement in technology in processes or products.
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