Shropshire accountants urge companies to cash in on HMRC scheme
Businesses across Shropshire are missing out on thousands of pounds worth of free money aimed at helping them develop new products and processes, a local firm of accountants has warned.
Shrewsbury-based DJH Accountants is urging local companies to take advantage of the government’s Research and Development Tax Credit scheme, which can offer eligible firms either a sizeable tax reduction or a cash payment from HMRC.
“R&D Tax Credits are the biggest government incentive to kick-start innovation, with support in excess of £1 billion provided in the year up to March 2010 alone,” Steve Timmis, Director of DJH Accountants revealed. “Many companies are unaware of the programme, or are under the impression that their line of work doesn’t qualify as ‘R&D’, but in many cases this couldn’t be further from the truth. Under the scheme, research and development is classified as work that either ‘leads to advances in science or technology’, or looks to ‘resolve scientific or technological uncertainty’, so new or improved products, processes, or services are all eligible projects.”
R&D Tax Credits enable companies spending at least £10,000 a year on qualifying research and development to claim a deduction on its Corporation Tax bill. SMEs are able to claim 200% of qualifying expenditure, while larger firms can claw back 130%. Loss-making SMEs may also be entitled to a cash payment worth 25% of its R&D spend too.
Steve Timmis commented: “The tax credits can be claimed back against revenue costs only, so staff wages, both direct employees and temporary workers sourced through agencies, are eligible. For most R&D projects, this tends to be one of the biggest expenses, due to the highly qualified or experienced nature of the staff required, so it really is an avenue worth exploring.
“From April next year, the government is planning on increasing the level of tax credit for SMEs from 200% to 225%, while it is also proposing to scrap the £10,000 minimum annual spend requirement, so the incentive will soon be even more business-friendly. Any local company interested in finding out whether they are eligible for R&D Tax Credits, or any other similar business support, is more than welcome to contact a member of our team to arrange a free, no obligation consultation,” Steve Timmis concluded.
With bases in Shropshire and Staffordshire, DJH Accountants provides a wide range of services to businesses and individuals across the Midlands, including accountancy, tax advice, business start-up support, personal tax advice, wealth management, and financial planning. Founded in 1984, the company has built up an enviable reputation for providing timely, cost-effective, and professional financial advice, tailored to the needs of each client, from large multinational companies to rapidly expanding SMEs.
