Quarrying firms missing out on R&D tax credits
Latest statistics by HMRC show companies are continuing to miss out on hundreds of thousands of pounds
MINING and quarrying companies in the UK are continuing to miss out on hundreds of thousands of pounds of research and development (R&D) tax credits, according to the latest figures released recently by HMRC.
The statistics show that despite R&D tax credits aiming to drive innovation, mining and quarrying firms’ R&D claims are continuing to fall behind other sectors with companies claiming a total amount of £50 million in 2016.
The analysis indicates a positive trend for mining and quarrying firms with an increase of 100% in the total value of tax credits claimed since 2015, compared with the average for all sectors of 25%. The value of each claim was also extremely strong with companies in this sector receiving almost £1 million on average.
However, the number of claims has dropped 15% year on year and the sector is significantly below other sectors such as Manufacturing, which secured £860 million in R&D tax claims, and Professional, Scientific & Technical, which claimed back £635 million.
Overall, Mining & Quarrying accounted for just 0.2% of total claims and 1.8% of the total tax benefits claimed.
The statistics provide evidence that many mining and quarrying companies are continuing to miss out on this valuable tax relief initiative, and according to one of the UK’s leading R&D tax credit specialists, The Momentum Group, this is due to a number of reasons, including a lack of awareness and not understanding which activities and costs qualify for this purpose.
Momentum Group managing director Tom Verner commented: ‘One of the biggest issues with mining and quarrying companies claiming their full R&D tax relief is that many believe R&D tax credits are only available for traditional research sectors and ‘white coat’ industries.
‘These claims are so important in encouraging companies to innovate and by not taking advantage of this available tax relief, firms risk stagnating their growth and restricting their competitiveness, which effectively holds back our overall economy. Relief can be in the form of cash or a reduction in corporation tax liability.
Working with leading accountants, banks and financial institutions, and many others across the UK to raise the profile of this generous tax relief, The Momentum Group are calling on all mining and quarrying businesses and their accountants to take action this year to explore this valuable incentive.
‘As a UK company specializing solely in R&D tax credits, Momentum partner with mining and quarrying companies of all sizes to ensure they claim what they are legitimately entitled to,’ said Mr Verner.