UK start-ups and small businesses claim that HMRC is putting economic growth and progress with innovation at risk, due to ongoing issues with R&D tax credits.
According to the Financial Times, the UK’s tax office has been rejecting legitimate claims for vital research & development tax relief, delaying payments and requests for credit repayments.
Now, several organisations claim they are being forced to scrap plans for investment or are looking overseas for a more tax-efficient way of growing their businesses.
This is the opposite of what the UK government had intended, with R&D tax credits designed to boost innovation and support the mission for the UK to become a “tech superpower” by 2030.
R&D initiatives have been modified several times in recent years, largely in a bid to combat fraud, with an estimated £1.13 billion already lost due to false claims and errors. As such, the process of claiming has become more complex.
This is why it is crucial for businesses to work with a reputable R&D tax consultancy.
At Leonid, we only ever partner with well-respected R&D consultancies which have a strong track record of success with R&D tax claims. We have sourced highly experienced consultants who are laser-focused on achieving the right outcome for their clients. We would therefore advise any small business to work with a reputable R&D tax consultant - rather than attempting to navigate the process alone - when looking to maximise their innovation funding.
For more information on the state of the UK R&D tax market, please download a copy of our ‘Guide to the UK R&D tax talent landscape’.
Or, for an informal chat about the R&D tax recruitment market, please contact Emily Anderson.