More than half of small business owners are unaware of the R&D tax relief scheme and how it could benefit their business.
Research by Catax estimates that 57% of small businesses could be eligible to claim tax relief under current rules.
SMEs that carry out eligible R&D work can deduct 230% of eligible R&D costs from total their profits.
For every £100 of eligible R&D costs, £230 is deducted from company profits or added to trading losses for tax purposes.
- 44% thought that the scheme was only restricted to businesses in the science, drug and technology sectors
- 43% thought that eligible R&D activity had to be successful for a claim to be made.
Mark Tighe, CEO at Catax, said:
“In reality, a restaurant creating a new recipe, a brewery experimenting with a new pint or a business trying to streamline its IT with some proprietary cloud technology could all be eligible for tax relief. “
“The ‘people in white coats’ myth urgently needs to be debunked because currently SMEs are losing out not just financially but strategically: R&D can put them one step ahead of the competition, both at home and overseas.”