Thornton says thousands of small to medium sized businesses (SMEs) are
missing out on R&D tax credits totalling £125m a year because they are being
hamstrung by restrictive categorisation of what
HM Revenue &
Customs believes constitutes innovation.
In the four years after the inception of research and development (R&D)
tax credits, the amount claimed by UK businesses has increased by more than 800%
– but as a percentage of UK gross domestic product (GDP) R&D has remained
relatively flat over the last 10 years, dropping from 1.78% in 1997 to languish
at 1.75% in 2005.
Sarika Patel, Grant Thornton head of technology, said R&D was no longer
the sole domain of scientists in lab coats and was potentially a facet of every
business. ‘Anything that adds value to a product or process is potentially
entitled to tax relief, but in our experience businesses are not actively
looking out for this,’ she said.
‘There are issues with complexity which the Government needs to address. It
also needs to provide clarity as to how R&D tax credits apply to a
business’s everyday operations and hurry through current R&D proposals
awaiting EU approval.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states