Businesses aren’t investing in research and development because they lack the resources to make it happen, according to a survey by Moore and Smalley.
Almost two thirds of businesses questioned in the poll said they didn’t have the time or financial resources to make a serious commitment to research and development.
A quarter of businesses claimed they didn’t believe there was enough of an incentive to invest in research and development, despite the generous tax reliefs available. Meanwhile, around one in ten businesses believed they weren’t ‘high-tech’ enough to invest in research and development.
David Bennett, tax partner at Moore and Smalley, believes there’s never been a bigger incentive for SMEs to look at research and development.
There are two research and development tax relief schemes available – the large company scheme and the small and medium-sized enterprise (SME) scheme – each with its own rules on the relief available.
David said: “The government introduced these tax reliefs in a bid to encourage and reward investment and innovation by UK businesses. However, there are still many companies out there who are unaware these incentives exist or are unfamiliar with how they work.”