ISP UKFast has discovered that over 72% of its technology client base working in Research & Development is not receiving the tax credits available. Whatís more, 45% were not even aware they existed. With all of these companies in the Small business bracket, Lawrence Jones MD of UKFast believes itís time the government did more to encourage those who need the breaks.
Harper James conducted the studies for UKFast revealing that the Government is not setting a level playing field. ìLarger more established companies are enjoying the incentives,î explains Jones. ìBut the vast majority of small businesses that try for relief give up because they donít have the resources to follow a claim through.î
When questioned, an Inland Revenue spokesman conceded that it is often hard to translate legislature into easy to read manuals for those who cannot afford the consultancy of a top level accountant.
Research & Development tax credits are a company tax relief that can either reduce a tax bill or, for some SMEís, provide a cash sum. Mike Dugan of Bytecraft was not aware of the allowances and past experience led him to believe that applying for such credits would be a ëdreadedí prospect.
UKFast is a company founded on growth through Research & Development and Jones is calling for improvements to the system. ìItís ironic that the Government seeks to encourage innovation and yet the very people with the drive to push technological boundaries are unaware of such tax breaks or feel discouraged to apply for them.
No relief for Research & Development SMEs
ISP UKFast has discovered that over 72% of its technology client base working in Research & Development is not receiving the tax credits available
