Small businesses unaware of R&D tax relief

More than half of small business owners are unaware of the R&D tax relief scheme and how it could benefit their business.

Research by Catax estimates that 57% of small businesses could be eligible to claim tax relief under current rules.

SMEs that carry out eligible R&D work can deduct 230% of eligible R&D costs from total their profits. 

For every £100 of eligible R&D costs, £230 is deducted from company profits or added to trading losses for tax purposes.

Further findings:

  • 44% thought that the scheme was only restricted to businesses in the science, drug and technology sectors 
  • 43% thought that eligible R&D activity had to be successful for a claim to be made.

For more information go to https://www.gov.uk/guidance/corporation-tax-research-and-development-tax-relief-for-small-and-medium-sized-enterprises

Contact us today to discuss whether your business can take advantage of R&D tax relief.