UK SMEs risk losing out on £47bn in R&D tax relief

A new HMRC data analysis has found that small and medium -sized companies in the United Kingdom fail to claim up to 47 billion pounds in the field of research and development (R&D).

While 36 % of small and medium enterprises across the country participate in innovative activities, less than 6 % of them already submit the research and development tax claims. This leaves 38,000 companies, each of which may lose an average of 70,000 pounds.

The research, conducted by small business accountants, highlights the large regional differences. Buckinghamshire stands out as a space with the highest possible tax savings – the comedy usually provides 138,000 pounds on average. However, more than 18,000 qualified companies may lose the province by not making a claim.

Berkshire ranks second in terms of potential savings, but less than 5 % of its companies participating in innovation benefit from the comfort of research and development. Oxfordshire, a famous innovation center, sees low demand rates: only 893 (6 %) of her innovative work provides a claim.

The Great Manchester is leading the country to alleviate the unnoticed research and development tax, as the study indicated that despite the provision of 225 million pounds, small regional and medium -sized companies are still abandoning an additional 2.7 billion pounds. “Our analysis shows a clear opportunity for small and medium -sized companies in the UK to reduce tax obligations. These inscriptions are necessary to support scaling and innovation leadership, especially when the autumn budget brought new challenges,” commented Tom Bigz, a partner at Wells.

With many small and medium -sized companies that overlook the research and development tax claims, experts say more support and awareness is needed to stimulate innovation and growth tumor. “We believe that with correct help, small companies around the UK can continue to prosper,” adds Biggs.