57% of small businesses could be eligible to claim tax relief
More than half of small business owners are unaware of the R&D (Research & Development) tax relief scheme and how it could benefit their business.
That’s according to research by tax relief specialist Catax Solutions, which estimates that 57% of small businesses could be eligible to claim tax relief under current rules.
It says that SMEs which carry out eligible R&D work can deduct 230% of eligible R&D costs from their total profits. That means for every £100 of eligible R&D costs, £230 is deducted from company profits or added to trading losses for tax purposes.
Further findings of the research include:
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.