We are extremely fortunate in the Sheffield City Region to have a significant number of businesses innovating in a wide range of sectors. In recent years, the Government has continued to enhance tax breaks for innovation, such as Research & Development (R&D) and Patent Box Tax Reliefs, specifically aimed at providing companies with tax incentives to innovate. Many local businesses are not claiming or under-claiming these reliefs and are therefore paying too much tax.
We find that claims are often overlooked because individuals overestimate the level of innovation needed or are put off by the level of work required. Areas where claims are possible but are commonly missed include improving manufacturing processes, general technical troubleshooting, problems with installing new plant and machinery and businesses writing bespoke software either to sell or to run internal systems.
Government statistics indicate that as few as 10% of eligible businesses go on to claim what they are entitled to. This leaves many thousands of companies missing out and our experience backs this up; every week we encounter companies who are able to make claims, but don’t.
R&D Tax Credits give tax savings almost £25 for every £100 spent on innovation by profitable companies as well as cash payments for those making losses. Patent Box Tax Relief allows profits arising from patented items to be taxed at an effective corporate tax rate of only 10%.
Shorts' Radius team specialises in advising innovative businesses on R&D and Patent Box Tax Reliefs and to ensure that local businesses claim their full entitlement to these Government backed tax reliefs. We have a dedicated team of professionals, including an ex-HMRC R&D Inspector, who truly specialise in providing proactive and quality tax advice to innovative businesses.
Our team have successfully saved millions of pounds of tax for local businesses by preparing hundreds of claims for these tax reliefs; savings which are often reinvested in jobs and growth for companies in the region. We quickly and concisely assess a company’s entitlement then complete the claim process relatively painlessly. If you are uncertain whether your business might be able to claim, then please download our guide to making a successful claim for R&D Tax relief.
Tax reliefs for innovation present an unmissable opportunity for local businesses. The Government wants to see more claims being made and we are perfectly placed to help. Any business owner wishing to explore these reliefs further is invited to contact a member of our Radius team to arrange your free consultation.
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Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
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