Pictured: Steve Timmis
Businesses across Shropshire are missing out on thousands of
pounds worth of free money aimed at helping them develop new
products and processes, a local firm of accountants has warned.
Shrewsbury-based DJH Accountants is urging local companies to
take advantage of the government's Research and Development Tax
Credit scheme, which can offer eligible firms either a sizeable tax
reduction or a cash payment from HMRC.
"R&D Tax Credits are the biggest government incentive to
kick-start innovation, with support in excess of £1 billion
provided in the year up to March 2010 alone," Steve Timmis,
Director of DJH Accountants revealed. "Many companies are unaware
of the programme, or are under the impression that their line of
work doesn't qualify as 'R&D', but in many cases this couldn't
be further from the truth. Under the scheme, research and
development is classified as work that either 'leads to advances in
science or technology', or looks to 'resolve scientific or
technological uncertainty', so new or improved products, processes,
or services are all eligible projects."
R&D Tax Credits enable companies spending at least
£10,000 a year on qualifying research and development to
claim a deduction on its Corporation Tax bill. SMEs are able to
claim 200% of qualifying expenditure, while larger firms can claw
back 130%. Loss-making SMEs may also be entitled to a cash payment
worth 25% of its R&D spend too.
Steve Timmis commented: "The tax credits can be claimed back
against revenue costs only, so staff wages, both direct employees
and temporary workers sourced through agencies, are eligible. For
most R&D projects, this tends to be one of the biggest
expenses, due to the highly qualified or experienced nature of the
staff required, so it really is an avenue worth exploring.
"From April next year, the government is planning on increasing
the level of tax credit for SMEs from 200% to 225%, while it is
also proposing to scrap the £10,000 minimum annual spend
requirement, so the incentive will soon be even more
business-friendly. Any local company interested in finding out
whether they are eligible for R&D Tax Credits, or any other
similar business support, is more than welcome to contact a member
of our team to arrange a free, no obligation consultation," Steve
Timmis concluded.
With bases in Shropshire and Staffordshire, DJH Accountants
provides a wide range of services to businesses and individuals
across the Midlands, including accountancy, tax advice, business
start-up support, personal tax advice, wealth management, and
financial planning. Founded in 1984, the company has built up an
enviable reputation for providing timely, cost-effective, and
professional financial advice, tailored to the needs of each
client, from large multinational companies to rapidly expanding
SMEs.
For further information about DJH Accountants, please contact
the Shropshire office on 01743 454965, the Staffordshire office on
01782 710101, email mailbox@djh.co.uk