Since it was introduced by the UK Government in 2000, Research & Development (R&D) tax relief has proven to be an excellent measure, driving forward competitiveness in many British businesses, including a significant number of manufacturing companies which are ideally placed to secure this rebate. The scheme has really benefitted the sector by offering tax breaks to manufacturers, giving them a strong financial incentive to put greater investment into innovation.
In key manufacturing areas, such as the Midlands, North West of England and Yorkshire, the sector accounts for nearly a third of all R&D claims, underlining its importance in promoting competitiveness and growth within many businesses. With Brexit fast-approaching and the UK Government looking to ensure British manufacturing businesses continue to be world-leading, it is putting even more resources towards R&D tax relief. While this would be welcomed by the UK’s manufacturing community, I believe it is also time for higher standards to be implemented to give companies using specialist R&D tax relief advisers an assurance they are getting qualified and professional advice.
Since the scheme’s introduction, several dedicated R&D tax relief advisory firms have emerged across the UK, including Jumpstart, to help businesses identify whether they qualify for relief. Those which do are then given support in preparing their claims for relief on certain categories of innovation expenditure. Unlike other business advisory professionals including accountants, lawyers and pensions specialists, R&D tax relief firms have not been subject to any form of regulation or governance.
Article originally published on Global Manufacturing
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