UHY's Nottingham office reports £1.2 million annual savings in R&D tax relief claims

Added by Love Business East Midlands | 26 April 2022

£1.2 million in combined tax savings for East Midlands businesses has been achieved by UHY Hacker Young’s Nottingham office over the last claim year, with 37 companies having been supported with successful R&D claims.

Helping companies from the East Midlands across manufacturing, software and engineering industries - UHY has been instrumental in supporting local SMEs and larger enterprises navigate the Research and Development (R&D) tax relief scheme. This expert advice ensures that potential claims are not missed and that they are fully maximised.

Ian Dickinson, tax director at UHY’s Nottingham office, said:

“Supporting businesses across the East Midlands to fully realise the tax relief potential on R&D expenditure is very satisfying and we are pleased to be part of this success story for our valued clients - with £1.2 million in savings achieved across our regional client portfolio, which is an average saving of circa £32,000 for each business.

“Currently, SMEs can obtain tax relief on R&D expenditure which can yield an additional cash return of up to 33.35% for every £1 they spend on qualifying costs. Larger companies can also benefit from this generous tax relief, albeit at a lower rate. Not all claims will be accepted however, and it is important that we guide clients appropriately.

“At a time when cash is king, R&D tax relief provides a great opportunity for companies to manage their cash flow, either by reducing corporation tax liability or even securing a cash payment from HMRC.”

While the original rules introduced in 2000 concentrated on pure and applied research, the opportunity is potentially much wider. In fact, businesses undertaking their normal core activities often have scope for some of their activities involving qualifying expenditure. To this end, the team at UHY work closely with a businesses’ engineers, scientists and technology staff to map out all of the possible qualifying costs and projects.

Discussing the future of R&D tax relief, Ian concluded:

“R&D tax relief has been around for over twenty years, creating its own cottage industry of claim providers. Concern over abuse involving R&D tax reliefs has however led HMRC to tighten the rules, enquiring into an increasing number of claims and challenging them through the Tax Tribunal system.

“Furthermore, a stronger resourced team of HMRC officers is coming and a new approach is being introduced from 2023 that will put the emphasis back on the business owner to be able to understand and verify the claim. It is important that as their trusted advisers, we are here to help our clients.”

UHY Hacker Young provides a free R&D resource guide explaining the R&D tax relief scheme to help businesses navigate the rules, ensuring that potential claims are not missed and fully maximised.

For more information about UHY Hacker Young, or for R&D tax relief advice, please visit http://uhy-uk.com or call 0115 959 0900.

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