Many small-scale manufacturers in the UK are missing out on tax relief on their R&D projects because they do not know they are eligible for the scheme, a new report claims.In a recent survey, Deloitte found that over half (55 per cent) of the SMEs which were eligible for the tax relief were not claiming it.In the manufacturing sector, which is viewed as an ‘R&D heavy industry’, 71 per cent of SMEs were not claiming any of their relief. Of most concern, Deloitte says, was the fact that 20 per cent of the businesses did not even know that R&D tax relief was available."The UK government has recognised the importance of investment in R&D and has introduced significant incentives to encourage UK manufacturers to invest in new and innovative products," explained Jane Lodge, the UK manufacturing industry leader at Deloitte."Yet many companies are mistaken that they do not undertake eligible R&D and therefore do not make claims."Mr Lodge explained that in an economic climate where energy and raw material costs were increasing, it was vital for SMEs that they take advantage of any help that can.However, many companies still did not realise that they could claim the tax relief even if they were already being paid for the work."In a normal manufacturing cycle, up to 80 per cent of the total intellectual property in a product is contained in the know-how surrounding the manufacturing process," Mr Lodge explained.The company also warned that the deadline to claim the relief was fast approaching, so firms should check to see of they were eligible.© Adfero Ltd

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