Businesses could be missing out to the tune of tens of thousands of pounds by not claiming tax relief for their research and development (R&D) activities.
That’s the claim from chartered accountants and business advisers Princecroft Willis (PcW) after it successfully saved a Dorset company more than £30,000.
Upton-based Pambry Electronics designs, develops and supplies microphones, connectors and associated products to some of the world’s biggest manufacturers.
The family business, founded in 1972 by Brian Bicknell and now run by his son Nigel, has an annual turnover of £2.3 million and counts several UK blue chip companies among its customers.
It specialises in microphone development particularly for the mask and fighter aircraft fields and also distributes cable, connector and speaker systems.
The advanced facilities at its factory on the Upton Industrial Estate include a state-of-the-art acoustic chamber costing £50,000 and used for the accurate measurement of microphones and speakers.
“We operate in a very specialised area and R&D is a key part of the business,” said Mr Bicknell whose daughter, Gemma, has now joined Pambry Electronics as Sales Administrator.
He added: “We are looking to launch 12 new products in the next year as part of our expansion plans.
“Princecroft Willis looked in detail at our R&D activities and, as a result, we will be able to claim back £30,000 in tax relief. That pays for one guy and is very welcome.
“The government should be congratulated on supporting research and development. We’d like to see more initiatives like this,” Mr Bicknell added.
Mark Johns, PcW’s Managing Partner, said Pambry Electronics was a “classic example” of a company involved in research and development which was entitled to claim tax relief on its activities.
“Many firms may be unaware of the considerable tax incentives available to them which may run into tens of thousands of pounds. It’s very satisfying when our actions lead to clients such as Pambry Electronics being able to achieve significant savings,” added Mr Johns.
