R & D Tax credits for motorsport businesses
posted in Business by Phil Harris on 10:07 Dec 31st, 2014
HMRC have just released some statistics for R & D tax credits claimed by SME's in tax year 2012-13. Amazingly there were only 12,975 claims report Harris & Co, the specialist motorsport accountants in Northampton . The total value of the claims was a mere £600m.
Many businesses, especially those in the motorsport sector are clearly not claiming the relief.
As would be expected, manufacturing, information and communications and professional/scientific account for 77% of all claims. They claimed £490m in 2012-13, which is only about £49,000 per claim per business.
What is surprising is that 5% of all claims, worth some £25m, were claimed by admin/support service businesses. I find it hard to imagine how these businesses could possibly be carrying out work that fits the definition of qualifying R & D. Quite rightly HMRC are now starting to clamp down on potentially bogus claims.
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