Small businesses will now benefit from increased support and guidance when it comes to claiming Research and Development (R&D) tax credits, the government says.
HM Revenue & Customs (HMRC) has opened a network of seven new specialist centres across the country with the aim of encouraging small firms to take advantage of the tax relief system.
The aim of the tax credits is to encourage greater R&D spending in order to promote investment in innovation.
John Healey, financial secretary to the treasury, said: “R&D tax credits are playing a crucial role in encouraging innovation in UK businesses with more than £1.8bn having already been claimed since April 2000.”
The new units in Cambridge, Cardiff, Croydon, Leicester, Maidstone, Manchester and Southampton, will aim to offer small firms targeted business support and ‘outreach services’.
HMRC reports that more than 4,500 small and medium-sized companies are already claiming more than £250m each year in R&D tax relief.
Lord Sainsbury, the science and innovation minister, said: “R&D tax credits help companies to invest more in R&D, which can lead to the technology that brings new products and services to the market place, which in turn can help businesses remain globally competitive.”
R&D tax credits are a form of tax relief which can either reduce a company’s corporation tax bill or provide a cash sum.
© Crimson Business Ltd. 2006
