Local businesses could be missing out on valuable tax relief because of the widespread misconceptions about what constitutes ‘Research and Development’, warns John Shaw, Managing Director of Bolton-based DonnellyBentley Chartered Accountants.
Tax relief on ‘Research and Development’ is one of the most generous, yet most under claimed, tax incentives currently available. The scope for R&D claims is much wider than commonly believed and, as John explains, a short conversation with a tax expert will identify whether your business is eligible.
“Businesses wrongly assume that this tax relief applies to scientific breakthroughs of global importance and that making a claim is an onerous task, neither is true. It is very easy to identify potential claims and many businesses here in Bolton are doing eligible work. The success rate of claims is good and can often result in significant repayments which provide further investment into those businesses.”
R&D Relief was introduced in 2000 and has been transformed over the years into a very generous benefit. John continues:
“Although it is still considered a niche area of benefit, I would urge businesses that undertake the development of new products or processes, or simply make an appreciable improvement to existing products or processes, to seek professional advice which should very quickly establish whether a claim is feasible. Businesses should also know that it is possible to make retrospective claims too.”
For further information on R&D tax relief or any personal or business tax issue call John Shaw on 01204 388675 or email john.shaw@donnellybentley.co.uk
