15.7 C
Manchester
Sunday, June 23, 2024
EducationBusinesses in Manchester most innovative in the UK

Businesses in Manchester most innovative in the UK

Businesses in Manchester are leading the way in British innovation, with four times as many Research & Development (R&D) tax relief claims as its closest rival, specialist tax relief firm Catax revealed today.

The northern powerhouse city made 1,140 claims for R&D tax relief in just 12 months, worth £75m, latest figures show.

It was four times the 290 claims made by Edinburgh businesses in second place.

Businesses which spend time and money developing a new product, business process or service could potentially claim tax relief for R&D. In Catax’s experience, the average claim is worth £44,000.

Despite these figures, there is a common misconception that the R&D needs to be successful in order to qualify for this type of relief. However, an incredible 72% of senior business leaders don’t realise this is not the case and that, as long as time and money has been spent, the R&D could qualify.

Meanwhile, there also continues to be a lack of awareness around what qualifies for R&D tax relief in the first place, with many firms wrongly believing they wouldn’t be entitled to claim. Previous research suggests nearly half of businesses (44%) believe that R&D relief is restricted to companies in the science and technology sectors.

Catax CEO, Mark Tighe, commented: “Whilst it is true that more businesses are claiming the R&D tax relief that is rightfully theirs, far too many SMEs still don’t realise that they qualify.

“There needs to be more education among small businesses over what actually counts as R&D. Most don’t realise it’s not just a new scientific formula or a jet engine but a piece of software, an manufacturing process or even a new innovative restaurant dish. 

“The typical £44,000 claim is a significant amount of money and firms need to be asking themselves whether they can afford not to check if they could benefit.’’

Latest

USA v Bolivia: Betting preview, odds and offers

USA take on Bolivia this coming Sunday in a Copa America match. Here is our in-depth preview, as well as some betting tips and special offers.

Mexico v Jamaica: Betting preview, odds and offers

Mexico take on Jamaica on Sunday in a Copa America match. Here is our in-depth preview, as well as some betting tips and special offers.
Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

More News