Partner Article

North East innovative firms urged to take credit

North East’s businesses are being encouraged to take a fresh look at their Research and Development activity.

The government’s consultation on an ‘Above the Line’ (ATL) tax credit closes this week (29thJune 2012) and business advisory firm Deloitte is urging innovative firms to consider the impact of the proposed changes and respond to the consultation.

The proposed change will move R&D benefit from the tax line in a company’s accounts to operating profit and is expected to make the relief more visible to people carrying out the R&D, encouraging further investment in British based innovation.

Steve Blacker, director in Deloitte’s R&D tax credit team in the North East said: “The decision to introduce an above the line tax credit will be welcomed by larger firms in North East whose R&D qualifies for this relief.

“Under the proposed arrangement a company will therefore be able to directly offset the relief against the cost of qualifying R&D in the same way it would with a grant.

“Finance directors in particular should look at the consultation to make sure they understand the full implications of the changes and are able to claim the relief ‘above the line’ before the credits introduced in 2013.”

This was posted in Bdaily's Members' News section by Deloitte .

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#Manufacturing #Entrepreneurship #North East #Accounting #Innovation

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North East innovative firms urged to take credit

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