Edinburgh tax specialist welcomes HMRC move to simplify and improve R&D reliefs

The company has been at the forefront of raising awareness of the vital government scheme and the beneficial impact that successful claims can have on the future prospects of applicants.

And it pledged that it will continue to promote the scheme, which has seen the number of SMEs claiming tax relief in 2013-14 increase by around 23 per cent to more than 16,000, with the total amount of support provided through the SME scheme at £800 million.

Jumpstart also welcomed a new report by the manufacturer’s organisation, the EEF, which said that the UK is at least as good as competitor nations when it comes to R&D tax incentives - and more than 1 in 10 respondents said the UK is a world leader in this field.

HMRC’s initiative followed a consultation announced in the 2014 Autumn Statement on improving access to R&D tax relief. It was aimed at understanding the issues faced by small business and considered the views of more than 200 respondents.

The consultation identified four themes: awareness, design, understanding and administration. It has now laid out a plan of action to address these areas over the next two years.

Kevin Dixon, Jumpstart’s director of sales and marketing, said: “We know from our extensive experience in R&D tax credits, that SMEs are either unaware of the benefits available to them, or find the process difficult and time-consuming.

“Since 2008, we have specialised in spreading the word to businesses throughout the UK that R&D tax credits can play a major role in business funding. A successful claim relies on specialist expertise - understanding the technical and scientific processes to identify and justify eligible projects for R&D submission.

“However, anything HMRC can do to promote the scheme, simplify it or provide better guidance is to be welcomed. This latest initiative should be a significant boost to both R&D tax credit take-up and to innovation in UK businesses.”

The EEF’s report, the Innovation Support Report Card, in association with Vodafone UK, points out that aspects of the UK’s innovation system are already among the best in Europe. The UK has a position of international excellence in science, producing 16 per cent of top quality published research findings, with less than 1 per cent of the world’s population. The country is also home to three of the world’s top ten universities.

However, 7 out of 10 manufacturers say the UK could do better when it comes to Government support for commercialising new technology and 60 per pent of manufacturers say the UK needs to improve business access to scientific research.