Can you keep the UK from falling behind the R&D spending target?

Recent reports by the CBI have indicated that the UK will not hit its research and development (R&D) spending target of 2.4% of GDP, based on its current rate of growth, until 2053 – the actual deadline for this target is 2027.

The main reason for this shortfall is that businesses aren’t claiming the tax relief. Companies aren’t necessarily aware that this may be for them. Businesses may be under the illusion that it’s just for tech innovations. Well think gain. This tax relief applies to new and improved products or services, and new processes. Has your company been striving towards such solutions through investment in R&D? 

Now is a good time to take stock and see if you can benefit from this – and we can help you do this.  When you work with an accountancy firm like McKenzies, we delve into your business. No stone is left unturned, so that we can prepare your annual accounts with a comprehensive balance sheet showing everything your company owns and owes at the end of your year’s trading. You will have a record of tax made on profits and capital gains, calculated before dividends are paid. But, most importantly, we will have assessed and highlighted if you are eligible for claiming R&D – so that your company can benefit and you are rewarded for the hard work you are putting in for reaching your goals.

So, if you feel that you are one of these businesses that have invested in R&D and could benefit from the tax relief opportunity, then do get in touch and we can investigate further.

You can find out more about the CBI’s recommendations for Government R&D expenditure which includes calling on government to ‘make it easier for businesses to navigate innovation support’ and ‘to deliver the world’s most competitive R&D tax credit by ensuring that it recognises the growing importance of data-driven R&D.’

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