In 2003-2004 the Government provided approximately £250 million in funding of claims made under the R&D tax credit program to around 4,500 small and medium sized enterprises (SMEs).

It is estimated that there was between £500 and £600 million that went unclaimed and that an additional 11,000 SMEs could have filed claims in 2003.

Misconceptions are preventing some taxpayers from claiming substantial refunds through SR&ED tax credit claims.

The companies that did not file claims were likely either not aware of the program, or are not aware of the types of activities that are eligible for funding.

Large Company relief has only been available for eligible R&D incurred on or after 1 April 2002. Many large companies are not aware of the Large Company program or that they are in a position to claim the credits.

And the main culprit is…

For all the credit missed based on the reasons above, the main culprit might still be the complex nature of the claim process. Filing for an R&D tax credit requires a great deal of time, resources, expertise and commitment.

Learn how Braithwaite can help you obtain a tax credit without overburdening your internal resources. If you are interested in finding more answers to your questions and concerns read our FAQ or consult our knowledge library Strategies.

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