The Average SME claim, as stated by HMRC in their latest released stats covering the fiscal year to end March 2011, is just over £40K
We are constantly surprised when SMEs tell us that they have claimed R&D Tax relief, or rather that their Accountant has claimed for them, and that the amount is much less than this.
When we ask “how did you calculate this figure?”. the answer is a quick 5 minute conversation with the Accountant, finger in the air and a guess. No Technical Justification and no correct assessment of all qualifying costs for the R&D Tax claim – just a guess!
Now, Accountants know about tax calculations but they usually are not technology specialists. In many, many cases, the Client is simply unaware of what can be correctly claimed and what costs qualify for the R&D Tax credit.
The result is an under claim, often significantly so, and nobody wins. The Government want to encourage R&D and offer an improving carrot but if the SME is underclaiming then the incentive is not being used to invest in the business.
You should really speak to an R&D Tax specialist before you claim. It should cost you absolutely nothing for an initial discussion and if you are under-claiming, then you can still resubmit back for the last two years.
If you’re not sure that you are claiming your full R&D Tax Credit entitlement, then seek some free advice now. We are talking about cash being left on the table!