Home Education Businesses in Manchester most innovative in the UK

Businesses in Manchester most innovative in the UK

Mark Tighe

Businesses in Manchester are leading the way in British innovation, with four times as many Research & Development (R&D) tax relief claims as its closest rival, specialist tax relief firm Catax revealed today.

The northern powerhouse city made 1,140 claims for R&D tax relief in just 12 months, worth £75m, latest figures show.

It was four times the 290 claims made by Edinburgh businesses in second place.

Businesses which spend time and money developing a new product, business process or service could potentially claim tax relief for R&D. In Catax’s experience, the average claim is worth £44,000.

Despite these figures, there is a common misconception that the R&D needs to be successful in order to qualify for this type of relief. However, an incredible 72% of senior business leaders don’t realise this is not the case and that, as long as time and money has been spent, the R&D could qualify.

Meanwhile, there also continues to be a lack of awareness around what qualifies for R&D tax relief in the first place, with many firms wrongly believing they wouldn’t be entitled to claim. Previous research suggests nearly half of businesses (44%) believe that R&D relief is restricted to companies in the science and technology sectors.

Catax CEO, Mark Tighe, commented: “Whilst it is true that more businesses are claiming the R&D tax relief that is rightfully theirs, far too many SMEs still don’t realise that they qualify.

“There needs to be more education among small businesses over what actually counts as R&D. Most don’t realise it’s not just a new scientific formula or a jet engine but a piece of software, an manufacturing process or even a new innovative restaurant dish. 

“The typical £44,000 claim is a significant amount of money and firms need to be asking themselves whether they can afford not to check if they could benefit.’’

Previous articleCube3 set to reach new heights with client win
Next articleUKFast retains top workplace in Manchester honour
Philip Ghayour
Events, PR, and Marketing Manager at The Samuel James Group, Philip has a degree in Journalism from the University of Salford and holds an MSc in Marketing from Lancaster University, Philip has also worked at BBC Radio Lancashire, Clitheroe Football Club and Accrington Stanley Football Club.