As a Harrogate based business we’re passionate about helping other local businesses to thrive, but recent updated statistics from HMRC would indicate that a significant number of North Yorkshire SME’s are still missing out on vital funds from R&D Tax credits.
There are 419,000 SME’s based in Yorkshire and Humberside, but according to figures released last year by HMRC, for the tax year ending 2016, only 1,500 businesses were claiming under the SME R&D tax credit scheme, with an average benefit of £40,000.
Early this year, HMRC released further figures showing that of the 1,500 Yorkshire and Humberside SME’s that did claim, only 205 were based in North Yorkshire, though they did have an average claim size of £48,780. The low level of companies claiming R&D Tax Credits backs up our recent experience that there are still a significant number of eligible businesses that aren’t claiming in our local area.
Over the last couple of weeks, we’ve had an opportunity to meet with a number of local businesses in various different sectors whom (after an initial no obligation meeting) have engaged our services to make R&D Tax Credit claims on their behalf. In reality all of these companies have missed out on significant funds by not making claims previously.
Examples of the types of business we have recently engaged with include:
- A manufacturing business, who have essentially been making the same product for almost a hundred years and, as a consequence didn’t believe they would be eligible. They didn’t realise that the improvements they have made in their production processes qualified for R&D Tax relief.
- A web-agency thought that as they were doing work on behalf of their clients, they couldn’t make a claim. What they failed to realise was that some of their clients fell into the Research & Development Expenditure Credit (RDEC), (previously known as the Large Company scheme), so the web-agency could claim this work under the RDEC scheme. They also didn’t recognise that some of their own internal development qualified as R&D under the SME scheme.
- A small niche manufacturer of equipment for the electronics industry. The MD, who did a lot of the initial R&D work, didn’t believe it was worth making a claim because it was only the work he did that was eligible. Being on a small salary and taking dividends, he thought the claim wouldn’t be worth his effort. What he failed to recognise was the contribution other employees made to the R&D, building and testing prototypes etc. There was a claim well worth making.
If we can work with all of the companies we’ve met over the last couple of weeks and get them an average benefit of £48,700 per annum imagine how they could re-invest that money to further grow our local economy!!
We work with Accountants and professional bodies to help them ensure their clients get the R&D Tax credits they deserve.
If you are an Accountant, or other professional service or body, and have clients that make products, hard or soft, but you don’t understand the technicalities of what your clients do, get in touch and we can work with you under our partnership programme to make sure your clients get the R&D Tax Credits they deserve.
If you feel you or your clients would benefit from a no obligation R&D assessment by our technical team, please take a look at our R&D Tax Credit Page or Contact TEQ Group today on 01423 815299 and we’ll get kick-start your R&D Tax Credit claim.
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