A report by accountants RSM has found that 59% of UK manufacturers have claimed R&D tax relief in the past. This is a far cry from the normal quotes banded around about only 5% of companies knowing that R&D tax relief exists and we welcome this change. It’s good for UK manufacturing and good for the UK as a whole.
So, what about the other 41% that are not currently taking advantage of the opportunity?
There are questions around eligibility and ease of access that need to be addressed. We know from working in this industry for 8 years that perceptions of R&D relief and the facts are sometimes mismatched.
Making a R&D tax relief claim
Claim criteria has changed quite significantly since R&D relief became available in 2000, so businesses that may previously not be eligible may be pleased to find out they may now be successful.
There is also a misconception that the process may be too difficult and the rewards not worth pursuing. Our service is designed to take up as little time for the company as possible.
Following an initial phone conversation where we’ll be able to confirm eligibility, we’ll come and meet with you to discuss your work in more detail. From there we take care of everything, from compiling the claim through to liaising with HMRC. Once submitted your claim takes on average 4 to 6 weeks to be processed.
We only charge for our service once your claim is successful and we pride ourselves on making the process as pain free as possible.
UK Manufacturing R&D Facts
Between 2013-2015 more than 6,000 UK manufacturing claims were made totalling £770m, so we’d advise anyone who is not sure of a claim to get in touch with us.
UK manufacturing generates more than 50% of exports and 70% of UK business innovation. At a time of uncertainty with Brexit & concerns around recruiting and retaining talent, a thriving manufacturing sector is more important than ever.
We all need and want a healthy manufacturing industry. To leave potential funds on the table seems like a risk businesses don’t need to be taking.
Here’s some UK Manufacturing R&D facts for you from HMRC:
· 10% rise in the number of manufacturing claimants between 2013-2015
· ‘Manufacturing’, ‘Professional, Scientific and Technical’, and ‘Information and Communication’ sectors continued to have the greatest volume of claims, making up a total of 75% of claims and 77% of the total amount claimed for 2014-15.
· Between 2000-01, when the R&D tax credit schemes were launched, and 2014-15, over 141,000 claims have been made and almost £14.0 billion in tax relief claimed.
· 30% of all R&D tax relief claims were from the manufacturing industry in 2013-14. Between 2013-2015 more than 6,000 claims were made totalling £770m
Think you might be eligible for R&D?
Call us on 0115 842 0402 for a free consultation.
Read RSM's Manufacturing Monitor 2017 and the HMRC Research and Development Tax Credits Statistics in more depth.