Companies missing out on R&D rewards

Over half of Northern Ireland businesses invest in innovation and R&D, but many are still not aware that they are missing out on the full potential rewards.

Research by PricewaterhouseCoopers LLP suggests that as much as £1 billion in government cash lies uncollected because UK companies don’t know their way around the rules for claiming tax relief on research and development.  PwC’s experience in helping local companies claim R&D tax relief, suggests that the problem extends throughout Northern Ireland.

Northern Ireland companies spend some £155 million a year on R&D, however, 10 high-spending companies alone account for 41 per cent of the total business R&D spend, so missing out on available tax breaks can prove very costly indeed. But many do, confused by the regulations, often unsure if their investment is eligible and frequently seriously underestimating the amount of resources invested in R&D.

In one case, a leading technology company believed that their activities did not qualify for R&D tax relief, but after a review by PwC’s R&D tax relief team, it was clear that a significant proportion their activities qualified for tax relief and a claim spanning a number of years was filed with HM Revenue & Customs.  The result was a whopping seven figure windfall.

R&D tax relief is a right – not a concession. The government has set aside substantial sums because it wants to encourage and reward R&D activities, so the more eligible companies claim and the more the government gives away, the better the scheme is working.

Contact details
Email: Caroline Keenan
Tel: +44 (0) 289 041 5248