August 21 - UK headquartered business advisory Baker Tilly says that smaller transport and logistics firms operating in the UK may be missing out on tax breaks resulting from research and development (R&D).
The latest figures from HM Revenue and Customs (HMRC) show that the value of tax breaks claimed by companies investing in R&D has tripled in the last decade to GBP1.2 billion (USD1.88 billion). However, only 135 claims for research and development tax relief were made by SMEs in the transport, storage and communications sectors, totaling GBP5 million (USD7.83 million), a tiny fraction of the GBP420 million (USD657.76 million) claimed by SMEs across all sectors.
Any company eligible can deduct up to 225 percent of qualifying expenditure when calculating profit for tax purposes, says Baker Tilly.
The kinds of activities undertaken by logistics firms that might qualify for this relief include; investment in process improvement; investment in software: and overheads associated with R&D operations.
"There are likely to be many firms in the logistics sector who are unaware that they may qualify for this type of tax relief. Claims can even be backdated for up to two years, so for companies struggling with cash flow difficulties, this relief can provide a much needed lifeline," says Tony Summers, Baker Tilly's head of transport and logistics.