A Manchester-based research and development (R&D) tax specialist firm has claimed back £10 million in R&D tax rebates for UK businesses in its first year of trading.
Established in 2019 by Anthony Doran and operating across the UK, Recoup Capital has successfully claimed thousands of rebates for businesses in sectors ranging from construction, manufacturing and engineering, to retail, science and technology. The average claim is 146% over the national average of £50,000 at £123,000.
The Research and Development tax credit incentive was introduced in April 2000 by HMRC and is designed to encourage and reward limited companies in the UK for investing in innovative products, services and processes by providing them with a tax credit of up to 33p for every £1 invested.
It’s thought that some sectors such as construction are missing out on millions in R&D credits, with 95 per cent of businesses that are eligible to claim back on their research and development work failing to apply and take advantage of the opportunity.
Businesses that are able to claim R&D tax credits can use the cash boost for a whole range of purposes, including to attract potential investors, invest in further innovation, grow their team, or to support their finances.
Recoup Capital MD, Anthony Doran, said: “There’s no denying that 2020 has been an incredibly tough year for most businesses, so we’re particularly proud to have claimed back £10million in R&D tax credits for our clients in our first year of trading. So many businesses miss out on what they’re entitled to because they don’t think they qualify or don’t have the knowledge of the tax system to understand what they’re owed. It’s been incredibly rewarding to help our clients thrive this year by helping them access the funds they are owed to fuel cash flow at such a difficult time and also provide the foundations for future growth. The next couple of years are going to still be tough for UK businesses, that’s why our next target is to help UK businesses claim £75m by 2022.”