Profitable tax paying SME companies conducting qualifying development work can claim government backed Research and Development tax relief worth over a quarter of their R&D costs. Companies with losses in the year can claim a payable credit from HMRC worth up to a third of their R&D costs.
Recent statistics show that more than 25,000 companies are claiming enhanced tax relief using the R&D tax schemes. This is a very small fraction of the companies registered at Companies House. So why do so few companies take up this generous relief? Is it because R&D tax relief is too difficult to obtain? Maybe R&D is undertaken by only a very small percentage of companies? Or, perhaps a lot of companies are just missing out?