R&D tax credits can help unlock potential
Across Northern Ireland, the wealth of potential and innovation in businesses is on the rise. The number of businesses registered to pay VAT or PAYE tax rose by 2.2% to 71,615 from 2017 to 2018, according to latest figures from the Northern Ireland Statistics and Research Agency (Nisra).
This figure is set to steadily increase again, demonstrating the rising growth and opportunities for NI businesses.
However, in spite of this figure, statistics from HMRC show that there has been a slight decrease in NI companies availing of research and development (R&D) tax credits.
In 2018, companies from across NI claimed a total of £55m R&D tax credits.
While this is an impressive figure, NI claims account for just 3% of total claims and 2% of the total tax benefits claimed.
The average received per R&D tax claim by companies in NI was £46,000, placing the region significantly behind the rest of the UK.
R&D tax credits are specifically designed to drive innovation, but as many across the NI business sector are naturally innovating and growing, they are also missing out on the business benefits R&D tax credits can bring.
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For companies wishing to increase their innovation and business success, now is the opportune moment to explore R&D tax credits, as the end of the financial year approaches.
The best way to understand how your company can avail of R&D tax credits and help your business to thrive, is through speaking to an R&D tax credits specialist.
The Momentum Group, which is a multi-award-winning R&D tax credits advisory firm based in Bangor, recognises the untapped potential tax credits can bring to businesses.
Despite many companies in NI realising the benefits of R&D tax credits, the potential is far greater.
In our experience, there are still many local businesses that are either not aware of R&D tax credits, incorrectly think they do not qualify or feel they lack the necessary experience to submit a claim.
Many companies are not still claiming their full legitimate entitlement."
At present, the R&D tax credits initiative is meeting its purpose of encouraging innovation and enabling companies across the UK to compete in a global marketplace, ensuring post-Brexit economic prosperity.
The legislation pertaining to R&D tax credits is complex. Therefore, it requires an R&D tax credit specialist with technical expertise across a wide range of sectors to understand the detailed processes fully.
At Momentum, our approach has always been to apply the highest professional standards to every claim we prepare, resulting in a 100% success rate, across 800 claims with over £125m R&D tax relief approved.
We have helped a record number of Northern Ireland companies with R&D tax credit claims in the past year.
These companies have been able to bolster their businesses through reinvesting these savings into innovation, NI exports, employment and the local economy.
As more companies add to the NI business landscape, there is more opportunity than ever before.
Through helping companies to avail of this UK government initiative, Momentum's expert team of chartered accountants, business, commercial and ex-HMRC technical staff are each championing the innovation taking place within the NI business sector.