Available to companies that do not qualify for tax relief under the more generous SME scheme, a 12% research and development expenditure credit is payable in respect of qualifying Research and Development (R&D) expenditure regardless of whether or not the company has taxable profits. 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?