Tait Walker has helped North East businesses grow and invest by reclaiming over £20 million of Research and Development (R&D) tax relief since 2011.
R&D tax reliefs are now worth £20m to North East Businesses every year and government statistics announced last week reveal that approximately 20% of the region’s successful claims up to June 2015 were carried out by Tait Walker’s R&D tax relief specialists.
Tait Walker has successfully processed over 375 R&D claims for a broad variety of businesses in different sectors, and the firm’s yearly relief generation has increased each year, with £7m as the current annual average, compared with £2m reclaimed in 2011.
Tax partner at Tait Walker Alastair Wilson said: “Our largest single claim generated a tax repayment of over £1m and we have secured a total of over £2.5m for one group. Our average is approximately £55k which is still a significant amount. R&D tax reliefs offer real investment opportunity for companies.
“Businesses often don’t realise they’re eligible to apply for R&D tax relief because there is a feeling that research and development is only applicable to factories or labs. There’s actually a wide range of business activity which falls into R&D tax relief criteria, including IT development, offshore fabrication, manufacturing and food processing – and that’s just a few examples.
“In the Chancellor’s March budget this year, R&D incentives were increased for both large companies and SMEs from 1 April 2015 and we’ve seen huge growth in the number of claimants in the North East which is a really positive sign for the region.”
HMRC statistics show that companies in the region received a total of £40m in R&D tax reliefs in the last two years, an increase of 60% since 2014, however this is still only 2% of the £1.7bn which was claimed across the UK.
Alastair added: “We have also seen an increase in claims from large companies which is down to a new scheme that allows cash rebates, opening up a host of new options for claimants.”
The variety of companies Tait Walker has successfully made R&D tax claims for include water utility improvements for the London Olympics to power generation systems in the Carribean.
More recently, Tait Walker secured significant sums for Washington-based Century Composites who continue to manufacture market leading carbon fibre fishing rods. At the other end of the region in Northumberland, Solar Capture Technologies has invested its R&D claims in personnel and facilities to further research and develop renewable energy solutions.