Mersey accountants secure £3.6m in R&D credits
During the 18 months of the pandemic Liverpool accountancy firm Mitchell Charlesworth has secured more than £3.6m in R&D tax relief for local firms. Tony McDonough reports
Liverpool accountancy firm Mitchell Charlesworth says is secured more than £3.6m in R&D tax credits for its clients during the COVID-19 pandemic.
UK firms can claim tax relief on money invested into research and development of new products or processes. Around £37bn a year is invested into R&D but many firms are confused on what qualifies for relief.
Mitchell Charlesworth’s SME client base is focused mainly in the Liverpool city region and wider North West and, over the past 18 months, has helped businesses across multiple sectors claim R&D relief.
The average amount claimed back by its clients was more than £42,000. Successful claims have been made across a wide variety of industries, including manufacturing, technology, construction and professional services.
Not all of these industries are offering high tech solutions or groundbreaking research. The R&D tax relief is available across a wide range of business activities.
Phil Hartley, tax director and R&D specialist at Mitchell Charlesworth, said: “As we draw closer to the end of the pandemic, I look back on this period of uncertainty with great pride at the support that we have been able to provide to our clients.
“In some instances, this has been crucial to allowing the companies to not only survive but to grow during the past 18 months. R&D tax credits are continuing to play a crucial role in supporting companies with their innovative activities and we have seen an increasing number of companies looking to make a first time claim during 2021.
“However, it is important to note that HMRC have recently issued a consultation document on R&D which indicates they are looking to ensure that the scheme ‘remains up to date, competitive and well targeted’.
“This suggests that changes to the relief are coming and therefore it is more important than ever to take professional advice when making an R&D tax relief claim.”