Jumpstart, which has submitted more than 3,000 claims since it was formed in 2008, believes more needs to be done to encourage businesses to embark on R&D projects – especially in light of Brexit uncertainty.
Managing director Scott Henderson (pictured) said: “For every £1 of government support UK firms receive, they spend £2.35 in the economy through R&D. Imagine how that figure could grow if they made the R&D tax relief process simpler and more inclusive.
“Uncertainty is growing with the protracted nature of the Brexit negotiations and we need to find ways of offsetting this and ensuring innovation continues to flourish with manufacturers. HMRC figures revealed a 19% rise in the number of claims for R&D tax relief last year…that’s great, but it is still only 26,255 businesses.”
He continued: “This is just a small fraction of the economy and there will be thousands out there that are innovating but not getting involved. A positive outcome from the government’s review of the tax treatment of R&D to make it more attractive than international partners has the potential to add hundreds of millions to the UK economy.”
Since inception, Jumpstart has recovered over £100 million in R&D tax relief and identified over £500 million in eligible R&D expenditure for UK businesses. The greatest number of claims were made in the software, IT and manufacturing sectors.
Scott said: “Our industry experience, scientific and technical expertise and deep understanding of HMRC’s regulations enables us to identify and claim every last penny our clients are entitled to. More often than not this money is ploughed back into future R&D and innovation projects that are helping to create jobs and improving the UK’s competitiveness.”