Champion Accountants has announced it has so far secured £34m in research and development (R&D) tax relief claims for its clients.
The accountancy group, which has practices in Manchester, Chester, Preston and Blackpool, warned that the government’s R&D tax relief scheme is “still hugely underutilised”, but it has seen successful claims secured throughout the pandemic.
It is now calling on potentially eligible businesses to “capitalise on the opportunity” and seek R&D relief claims.
The R&D tax relief scheme was launched in 2000 and aims to support SMEs working on research and development projects, allowing them to save up to £43.70 for every £100 spent on qualifying activities.
Champion Accountants’ R&D tax specialists said they have seen a 100% success rate in claims, with an average claim size in cash terms is £46,000.
Over the past year, the firm has supported businesses in engineering, digital, healthcare, retail, manufacturing, food and drink and utilities, to achieve cash refunds or Corporation Tax reductions from HMRC, used to help businesses fuel their growth.
According to the group, many businesses “perform activities which would certify for the relief on a daily basis, without knowing it”.
It adds that businesses in any sector which are “developing new or improving existing products, software, systems and processes” are eligible, and the relief can also be claimed on unsuccessful projects.
Claims can be made against staff costs, costs for materials, consumables such as utilities and software licenses, and sub-contractor costs.
David Herd, senior tax advisory consultant at Champion Accountants, said: “We’ve been leading the charge to raise awareness of the Government’s R&D Tax Relief scheme and the results show; helping our clients claim £10.1m in R&D Tax Relief in the past 12 months alone and we’re pleased to see so many recipients benefit from their claims.
“This tax relief is still being paid out by the government even against the COVID-19 backdrop, and cash refunds at this time can prove lucrative for businesses who face other financial challenges.”
He added: “Companies tend to be surprised when we talk them through the scope of eligibility for R&D Tax Relief, with many completely unaware that they could’ve been inputting claims for years.
“Our team of tax specialists are highly experienced in this area, so I would encourage any business who might have questions about making claims to get in touch for a chat, because you could see your business grow exponentially as a result.”