Northern Ireland Innovation on the Rise
By Brenda O'Leary
Published On October 1, 2021
The latest HMRC figures released online for R&D tax relief claims from across the UK for 2019-2020 are promising. [1] Whilst Northern Ireland claims have increased by 13% compared to the same period last year, it is still below par. Of the £135m claimed it accounts for just 2.65% of the total on a national level and only 1.8% of the total monetary benefit claimed.
Despite the UK Government’s ‘levelling up’ agenda to spread wealth creation across the country, the figures reflect familiar traits of significant regional inequality when it comes to claims. The Regional Development Strategy 2035 (NI) strengthens Belfast as the regional economic driver and Derry as the principal city of the North West. Despite a challenging year we have seen an influx of companies increase investments and create jobs in these areas.
There remains however, work to do in promoting R&D investment equally across all regions of the UK. Investing in research is beneficial to an economy, not only because innovations improve things like our health system, our ecosystem but it makes technologies more efficient. These all contribute to economic growth but more importantly for businesses, innovating ensures they remain relevant in their industry.
It is important that SME’s avail of government incentives particularly financial incentives like the R&D Tax relief to ensure a return on their investments. With over 15 years’ experience in Ireland and the UK, Braithwaite Consultants know only too well the difficulties companies may have in accessing Industry accurate information on this relief.
Too often companies are underclaiming or overclaiming because their activities and associated expenditure are not accurately interpreted. More problematic is the lack of understanding of what constitutes R&D under current legislation, preventing many businesses from claiming their just entitlements against government legislation.
Increasingly with the introduction of increased scrutiny over claims by HMRC, it is vital that companies engage with an expert specialist advisor. This will ensure complicity, peace of mind and in most cases a welcome increase in the value of their claims.
Contact us today for your FREE Consultation and get the credit you deserve.
[1] Research and Development Tax Credits Statistics: September 2021 – GOV.UK (www.gov.uk)
