Member Article

Region’s SMEs save £650,000 in R&D tax relief

Start-ups and small to medium-sized businesses across the North West have recouped more than £650,000 in tax thanks to one of the region’s leading business advice specialists.

Worsley-headquartered Champion Accountants has helped its clients save thousands through the Research and Development (R&D) tax relief scheme.

One landmark company based in Stockport has reclaimed more than £210,000.

As part of the government’s drive to boost UK productivity, SMEs that spend money on researching and developing new products and processes will receive a 225 per cent tax deduction on qualifying expenditure, including staff, materials, software and utility bills, as well as the ability to claim cash back from HMRC.

For example, a company that spends £8,000 on R&D will be entitled to a tax deduction of £18,000.

Any loss-making SMEs that haven’t yet made a profit can claim cash payments at a rate of 14.5 per cent, which is equivalent to £32.62 for every £100 spent on R&D.

Gill Molloy, group tax director at Champion Accountants, said: “There’s definitely a greater awareness amongst our clients about R&D as enquiries into eligibility continue to rise.

“We work hard to understand the intricacies of their businesses to ensure we utilise all suitable incentives and schemes, so we are delighted to have reached such an impressive milestone in tax savings that will help SMEs in the region grow.”

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