Nottingham’s rich vein of tech businesses could benefit from a tax boost recently announced by the Government according to a local taxation expert.
Under the new advance assurance scheme, small and medium businesses will find it easier to claim tax relief for spending on research and development (R&D) and HMRC aims to promote awareness of what is available.
Simon Browning, tax partner at UHY Hacker Young in Nottingham, said: “HMRC statistics show that more than 15,000 businesses are claiming some £1.4bn in R&D credits annually, but they have identified that there is more to be done to make this relief accessible for smaller businesses and raising awareness is a key part of this.
“Nottingham is a real hotbed of talent, particularly within the tech sector, and has the facilities in place to help nurture that – BioCity and the Creative Quarter, for example – and anything that makes it easier for SMEs is welcome news for businesses in the city.
“This is a growing sector in the city, with the likes of Accelerate Nottingham set to reinforce Nottingham’s position as a leader in the tech sector by establishing a dedicated hub in the city centre for startup businesses, and being able to access R&D tax relief offers a welcome helping hand for firms looking to invest.”
The measures will initially focus on small to medium size businesses, with bespoke guidance being issued, and will focus on raising awareness of R&D tax credits as well as offering a helping hand to first-time applicants.
“This advance assurance service for small companies looking to make their first claim is great news for anyone considering an investment as it will help them to seek assurances that what they have planned will benefit from the tax relief,” added Simon.
“For a lot of smaller businesses, this is unchartered territory and can be daunting, so this proactive approach from HMRC towards guiding people through will be very welcome.
“There are a huge number of startups and SMEs in Nottingham that will no doubt be able to benefit from this and will be able to make investments into their businesses.”
