Valuable tax credits are available from the Government for UK firms, yet few manufacturing, companies realise the system is there, a senior industry figure has warned.
Richard Simpson, director of UK plastics centre Faraday Plastics, is “amazed” at how few UK manufacturing companies properly understand the r&d tax credit system and is exhorting firms keen to benefit to contact the Inland Revenue or DTI. Simpson says the credits are now available for any qualifying UK trading company spending upwards of £10 000 on r+d annually.
Working with Plastics West Midlands, Faraday Plastics recently completed a first round of briefings appraising participating plastic processors of the tax credit opportunities on offer. “Most had not been well-advised by their accountants,” says Simpson, who explains that up to 150% of an SME company’s and 125% of a larger trading business’s r+d expenditure can be set against profitability and the company’s tax burden. Any claim should be made on the company tax return [CT600].
Faraday Plastics [T: 0193 925 0383] plans seminars for packaging companies with sister body Faraday Packaging