Some logistics firms could be missing out on substantial tax breaks, with SMEs in the sector accounting for just one per cent of all SME claims on research and development tax relief.
According to figures from HMRC, only 135 claims for R&D tax relief were made by SMEs in the transport, storage and communications sector, with claims totalling around £5 million out of the £420 million claimed by SMEs in all sectors.
“There are likely to be many firms in the logistics sector who are unaware that they may qualify for this type of tax relief. Claims can even be backdated for up to two years, so for companies struggling with cash-flow difficulties, this relief can provide a much needed lifeline,” said Tony Summers of accounting firm Baker Tilly.
Baker Tilly is an advocate of the tax relief designed to encourage greater R&D spending and innovation whereby eligible firms can deduct up to 225 per cent of qualifying expenditure when calculating their profit for tax purposes.