Mitchell Charlesworth helps businesses access over £3.1 million in R&D tax credits
In 2021 Mitchell Charlesworth has helped businesses in the North West access more than £3.1 million from the government’s research and development (R&D) tax credit initiative. This is an increase of more than £1 million compared to the R&D tax credits accessed in 2020.
The average amount of R&D tax relief received by Mitchell Charlesworth’s clients in 2021 was more than £48,000, which has risen from £40,000 in 2020. Successful claims have been made across a wide variety of industries, including manufacturing, technology, construction and professional services. Not all of these industries are offering high tech solutions or groundbreaking research and the R&D tax relief is available across a wide range of business activities.
Phil Hartley, tax director and R&D specialist at Mitchell Charlesworth, says: “During another challenging year, R&D tax credits have continued to provide a significant cash boost for businesses. We have significantly increased claim volume and size and we are pleased that we have been able to help our clients benefit from this valuable tax relief.
“In November 2021 the government published a report on R&D tax reliefs which outlined measures due to be introduced in April 2023 to combat abuse and improve compliance. The measures include a requirement for greater detail surrounding costs and projects undertaken and more scrutiny into claims by HMRC. Given this tougher approach from the government, it is becoming imperative that qualified advice is sought when determining if activities undertaken qualify for R&D tax relief. Businesses will need to ensure that a claim is valid and that all available costs are considered and captured, which is where we can provide advice and support and have a great track record of assisting our clients in maximising the tax relief available to them.
“With guidance and support successful R&D tax credit claims can be made and, given that the corporation tax rate will increase to 25% from April 2023, will continue to provide valuable support to innovative businesses.”
Phil added: “There are still a large amount of companies missing out on potentially tens of thousands in R&D tax credits due to the common misconception that they simply don’t qualify. As we start a new year, consider checking if your business qualifies for R&D tax relief as one of your resolutions for 2022.”
This was posted in Bdaily's Members' News section by Anne Griffiths .