Mansfield company Stopford Associates is urging businesses to take advantage of Research and Development (R&D) tax relief after helping an Ollerton-based engineering company claim £195,000 through the scheme.

Many firms are unaware they meet requirements for the relief and are missing out on thousands of pounds.

With fewer than 5% of all eligible small and medium-sized businesses having submitted a claim, Stopfords is aiming to highlight the initiative and make businesses aware they may have completed or be planning a project that qualifies for the relief.

The majority of eligible companies are from the manufacturing and software sectors, including engineering, electronics, plastics and food processing. However, any company that invests in its own research and development may qualify, while claims can be made up to two years previously.

R&D tax relief is a government initiative that rewards limited companies which push the boundaries of innovation. It either reduces their tax liability or provides a tax refund. It works by allowing companies to deduct up to 225% of qualifying expenditure on research and development activities when calculating their corporation tax.

Brian Stopford, director at Stopford Associates, said: “Often when a business owner sees the words research and development they automatically think the scheme isn’t for them. In reality though, it’s amazing how many companies are carrying out work which could qualify for R&D tax relief.

‘It provides a fantastic opportunity for local businesses to receive or save a significant amount of money that could encourage further growth, and we have assisted businesses in the area to make savings or refunds ranging from £5,500 to £195,000.”

To find out more about R&D tax relief contact Stopfords on 01623 420269 go to www.stopfords.co.uk