Businesses are being urged to explore whether they could benefit from research and development (R&D) tax credits, following a major government announcement aimed at driving innovation across the UK.
Chancellor Rachel Reeves confirmed an £86 billion investment in R&D over the next four years, as part of the government’s wider strategy to grow the economy through technological advancement and productivity gains.
The funding is expected to support innovation in key sectors including pharmaceuticals, green energy, artificial intelligence and advanced manufacturing.
But while much of the national focus has been on large-scale projects and major urban centres, the team at JF Hornby & Co are reminding the county’s businesses that R&D tax relief is not just for multinationals.
Watching brief: Paul Hornby has welcomed the announcement
Paul Hornby, Managing Director of the award-winning firm, said: “R&D tax credits remain one of the most under-utilised tools available to businesses seeking tax efficiencies and meaningful bottom-line impact.
“Too many business owners still think R&D has to involve white coats and million-pound labs. The reality is that if your company is developing a new product, improving a manufacturing process, or solving a technical problem in a new way, you may be eligible.”
R&D tax relief allows companies to claim back a proportion of their eligible research and development costs – either as a reduction in their Corporation Tax bill or as a direct cash payment. In some cases, claims can go back two accounting periods, unlocking significant sums that can be reinvested straight back into the business.
The scheme has evolved in recent years, with the government taking steps to crack down on abuse by unscrupulous agents while continuing to support genuine innovation.
With the Treasury’s renewed commitment to R&D, JF Hornby & Co are encouraging business leaders to revisit the opportunity – or risk leaving money on the table.
“In this economic climate, every pound matters,” added Paul. “We’ve worked with local manufacturers, food producers, software developers, and engineering firms to secure legitimate R&D claims worth tens of thousands of pounds. For many of them, it’s made a real difference to their bottom line.”
With increased scrutiny from HMRC, Paul also warned businesses to choose their adviser carefully: “If you’ve been approached by a cold-calling ‘R&D expert’ promising huge refunds with no risk, be cautious.
“A proper claim should be evidence-based and aligned with HMRC guidance. That’s where local, trusted advisors come in.”
For more information on R&D Tax Credits and or a no-obligation consultation, contact JF Hornby & Co on 01229 588 077 or email jfh@jfhornby.com.
