HMRC pays out £20million to innovative NI companies in R&D Tax Credit claims
By Eleanor McGillie
Businesses are claiming millions of pounds in R&D Tax Credit claims according to HMRC figures which show more and more companies are looking at innovation as a means of driving our economy forwards.
The scheme, which was introduced in 2000 for SMEs, with a separate scheme for larger companies launched in 2002, was set up by the UK Government to increase the R&D base by helping to reduce the cost of corporate research and development to encourage more companies to invest.
In 2013, SMEs in Northern Ireland submitted 270 claims which totalled a payout of £10million while 65 claims were submitted by large companies which also totalled £10million.
Tom Verner, of Bangor based Momentum Business Development, is managing claims on behalf of companies across Northern Ireland and said, although HMRC have paid out £20million to companies here, there is still a huge potential for other companies to benefit.
Mr Verner said: “I work with HMRC on behalf of companies here to help identify R&D activities and submit their claims so the process is run as efficiently and cost effectively as possible. In the first quarter of this year we have already helped companies identify £3.8million of qualifying expenditure.
“The most recent figures released by HMRC are to be welcomed as it shows an increase in companies here being more aware of the scheme which aims to increase innovation and boost wealth creation in our economy . There is no set limit on the amount of money available for R&D tax relief or credits and this is provided through the tax system and is dependent on what claimants in a given year apply for.
“There is also no time limit on the scheme so it is a permanent part of the corporate tax regime, unless, at a later date, the Government decided to amend the legislation.”
Mr Verner said R&D tax credits are not restricted to the types of industry which people used to associate R&D with, such as science and aerospace, but it includes companies who can demonstrate other innovations such as the development of new products and new processes.
He added: “Year on year R&D claims are increasing with more and more companies seeking to make these savings. We have expanded our team and moved into larger premises in Bangor to deal with the increasing number of companies seeking to make a claim.
“And although the number of claims being made by businesses in Northern Ireland lags behind the rest of the UK, the figures are very encouraging. Companies in the South East of England, for example, have submitted the most amount of claims (3,030 claims totalling £315million) followed by companies in London which have submitted 2,715 claims which amounted to £420million.”
Companies eligible to claim must be a Limited Company or PLC registered in the UK, the company claiming must be a ‘going concern’ at the time of the claim and it must be subject to paying corporation tax.
The amount of R&D relief claimed is proportional to the amount of R&D activity carried out.
NOTES TO EDITOR:
- Momentum Business Development Ltd is a Bangor based performance strategy company which puts actions in place which will make your business successful, profitable, competitive and will position it for expansion.
- HMRC’s latest statistics are published here – https://www.gov.uk/government/statistics/regional-analysis-of-research-and-development-tax-credit-claims
- For media information please contact Eleanor McGillie at MGMPR Ltd on 028 3756 9569 | 07709805379 | firstname.lastname@example.org | Brand Journalism Experts | Brand Journalism UK | Brand Journalism Northern Ireland | Public Relations Northern Ireland | Public Relations UK