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Firms missing out on cash entitlements

Many companies in the environmental development industry are failing to claim money they are entitled to, according to tax specialists  R & T Consultants.

Richard Cullum, the firm’s managing director, believes that numerous businesses are failing to benefit from the tax relief available to SMEs and larger companies as they are unfamiliar with the latest incentives.

Changes in the April 2012 budget increased the level of tax deduction applicable for R & D activities from 200 percent to 225 percent as part of the government’s strategy to boost economic growth in the UK. Richard, however, says that many companies are deterred by the complexity of the process.

“In the current economic climate, businesses need all the help that they can get,” he said. “There is actually a substantial amount of money available to companies of all sizes in the environmental industry. However, it seems that many SMEs are failing to claim tax relief for their research and development activities believing that it doesn’t apply to them – or that it is too much hassle.”

The R & D Tax Credit Scheme is only available to limited companies and includes SMEs with fewer than 250 employees and an annual turnover below £27m.