AM Online

Entrepreneurs missing out on £125m in R&D credits

New research shows that SMEs are failing to take advantage of £125m a year in research and development tax credits.

The figures, based on numbers issued by the Revenue & Customs, demonstrate that businesses have not capitalised on the R&D tax credits which are available.

Commentators put the discrepancy down to lack of knowledge about the scope of the scheme. Businesses which are not wholly research-based tend to believe that the R&D credits do not apply to them.

The take-up of R&D tax credits in the UK is among the lowest in Europe. Companies in Germany and the Scandinavian states are more familiar with tax credits schemes for R&D and so take-up there is around double that in the UK.

Accountants are also concerned that the British government’s definition of innovation deters many companies from applying for the credits.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.