Mining & Quarrying Firms Missing Out On Hundreds of Thousands of Pounds
Article printed in Plant and Civil Engineer Jan-Feb 2018 edition (p.g. 33)
Mining and quarrying companies in the UK continue to miss out on hundreds of thousands of pounds of Research and Development (R&D) Tax Credits, according to the latest figures released recently by HMRC.
The statistics shows that despite R&D Tax Credits aiming to drive innovation, mining and quarrying firms’ R&D claims continue to fall behind other sectors with companies claiming a total amount of £50m in 2016.
The analysis indicates a positive trend for mining and quarrying firms with an increase of 100 per cent in the total value of Tax Credits claimed since 2015, compared to the average for all sectors of 25 per cent. The value of each claim was also extremely strong with companies in this sector receiving almost £1 million on average.
However, the number of claims dropped 15 per cent year on year and the sector is significantly below other sectors such as Manufacturing which secured £860m in R&D tax claims and Professional, Scientific & Technical which claimed back £635m.
Overall, mining and quarrying accounted for just 0.2 per cent of total claims and 1.8 per cent of the total tax benefits claimed.
These statistics provide evidence that many mining and quarrying companies continue to miss out on this valuable tax relief initiative, and according to one of the UK’s leading R&D Tax Credit specialist the Momentum Group, this is due to a number of reasons. These include a lack of awareness and not understanding which activities and costs qualify for this purpose.
Momentum Group Managing Director, Tom Verner, commented: “One of the biggest issues with mining and quarrying companies claiming their full R&D tax relief, is that many believe R&D Tax Credits are only available for traditional research sectors and ‘white coat’ industries.
“These claims are so important in encouraging companies to innovate and by not taking advantage of this available tax relief, firms risk stagnating their growth and restricting their competitiveness which effectively holds back our overall economy. Relief can be in the form of cash, or a reduction in corporation tax liability.
“As a UK company specialising solely in R&D Tax Credits, Momentum partners with mining and quarrying companies of all sizes to ensure they claim what they are legitimately entitled to.” he continued.
Momentum has been working hard to raise awareness of R&D Tax Credits amongst companies in mining and quarrying. The company is successfully working with leading accountants, banks and financial institutions and many others across the UK to raise the profile of this generous tax relief.
The R&D specialists are calling on all mining and quarrying businesses and their accountants to take action this year to explore this valuable incentive.
To find out more about R&D Tax Credits contact a member of our team on 028 9140 4030 or email email@example.com