Thousands of businesses are missing out on this government Research and Development tax reliefs (https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief). This is despite them being set up 20 years ago in 2000.
HM Revenue & Customs states:“Your company or organisation can only claim for R&D Relief if an RD project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty."
Here lies the challenge. The statement does not spell out to businesses if or why they may qualify.
In manufacturing there are countless SME's not claiming for the simple reason that they do not think they are not eligible. They may be working in a supply chain. Or they may think their manufacturing process is too normal to be able to claim. I regularly am told by small business owners, "but this is just what we do day in day out".
But they overlook the fact that they are making improvements to their processes, to make it faster, stronger, more productive. Maybe their material components are being altered to make their production more cost-effective. It may be that they have experienced failed projects that they have written off, or faced uncertainty working with a new system, maybe they have needed to make adaptations. It is impossible to list all the various possibilities as to what or where they may just qualify.
The fact is that businesses owners consider they do not qualify or overlook claiming R&D tax reliefs because they feel it would take too much time to claim. Worse maybe they were advised by someone to 'not go there'. The government has set aside funds to reward innovation yet it is frightening to see how few small business are claiming are claiming, less than 5% of eligible businesses. Under claiming is a particular issue in the north.
The big manufacturers are making claims, yet thousands in the supply chain below them are missing out. If you are a manufacturer, or know someone who is, put them in touch with a specialist organisation. They can process a claim on their behalf compliantly, safely and resulting in a generous cash injection back into their business in a matter of weeks.