Mitchell Charlesworth secures over £3.1m in R&D tax credits

It said the average amount of R&D tax relief received by Mitchell Charlesworth’s clients in 2021 was more than £48,000

Mitchell Charlesworth has revealed it has helped businesses in the North West access more than £3.1m from the government’s research and development (R&D) tax credit initiative in 2021.

It noted this is an increase of more than £1m compared to the R&D tax credits accessed in 2020.

The average amount of R&D tax relief received by Mitchell Charlesworth’s clients in 2021 was more than £48,000, which has risen from £40,000 in 2020. It added successful claims have been made across a wide variety of industries, including manufacturing, technology, construction and professional services.

Phil Hartley, tax director and R&D specialist at Mitchell Charlesworth, said that R&D tax credits have “continued to provide a significant cash boost for businesses” and the firm has “significantly increased”claim volume and size.

He said: “In November 2021 the government published a report on R&D tax reliefs which outlined measures due to be introduced in April 2023 to combat abuse and improve compliance. The measures include a requirement for greater detail surrounding costs and projects undertaken and more scrutiny into claims by HMRC.

“Given this tougher approach from the government, it is becoming imperative that qualified advice is sought when determining if activities undertaken qualify for R&D tax relief. Businesses will need to ensure that a claim is valid and that all available costs are considered and captured, which is where we can provide advice and support and have a great track record of assisting our clients in maximising the tax relief available to them.”

He added: “With guidance and support successful R&D tax credit claims can be made and, given that the corporation tax rate will increase to 25% from April 2023, will continue to provide valuable support to innovative businesses.

“There are still a large amount of companies missing out on potentially tens of thousands in R&D tax credits due to the common misconception that they simply don’t qualify. As we start a new year, consider checking if your business qualifies for R&D tax relief as one of your resolutions for 2022.”

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