Small businesses urged to claim R&D tax credits

HM Revenue & Customs (HMRC) is trying to make it easier for small businesses to apply for Research and Development (R&D) tax credits by setting up seven specialist units around the country.

The new units are based in Cambridge, Croydon, Leicester, Maidstone, Manchester, Southampton, Cardiff (covering Wales, Scotland and Northern Ireland) and will deal with all R&D tax credit claims from small and medium enterprises.

HMRC hopes the new units will improve the handling of claims and also raise awareness of the R&D tax credit scheme among small businesses. A recent HMRC survey showed that businesses with fewer than 10 employees were less likely to have a good understanding of the scheme or to have claimed.

The aim of the tax credits is to encourage greater R&D spending in order to promote investment in innovation. Between April 2000 and April 2006 around 22,000 claims for R&D tax credits were made with almost £1.8 billion of support claimed according to HMRC figures.

Research and development tax credits are a company tax relief which can either reduce a company’s tax bill or, for some small or medium sized companies, provide a cash sum. The R&D tax credit works by allowing companies to deduct up to 150% of qualifying expenditure on R&D activities when calculating their profit for tax purposes.

From 1 November 2006, agents or companies with specific questions about making R&D claims under the new set-up are encouraged to contact the appropriate specialist unit for advice. Contact details for the new Research and development tax credit units are as follows:

Cambridge R&D Unit
Eastbrook
Shaftsbury Road
Cambridge
CB2 2DJ
Telephone 01223 442534

Croydon R&D Unit
Southern House
Wellesley Grove
Croydon
Surrey
CR9 1WW
Telephone 0208 633 4307

Leicester R&D Unit
Saxon House
1 Causeway Lane
Leicester
LE1 4AA
Telephone 0116 2535400

Maidstone R&D Unit
Medvale House
Mote Road
Maidstone
Kent
M15 6AE
Telephone 01622 760403

Manchester R&D Unit
6th floor
Albert Bridge House
1 Bridge Street
Manchester
M60 9AF
Telephone 0161 288 6118

Southampton R&D Unit
8th Floor
Queens Keep
1 to 4 Cumberland Place
Southampton
Hampshire
SO15 2UN
Telephone 02380 204253

Cardiff R&D Unit (Wales, Scotland and Northern Ireland)
14 West, Phase 2
Ty Glas
Llanishen
Cardiff
CF14 5FP
Telephone 029 2032 7003/7026

List of postcodes covered by each office
From 1 November 2006, companies whose main R&D activities are located in one of the following postcodes should send their corporation tax returns containing R&D tax credit or relief claims to the appropriate office listed below.

AB Cardiff
AL Cambridge
B Leicester
BA Cardiff
BB Manchester
BD Manchester
BH Southampton
BL Manchester
BN Maidstone
BR Croydon
BS Cardiff
BT Cardiff
CA Manchester
CB Cambridge
CF Cardiff
CH Manchester
CM Maidstone
CO Maidstone
CR Croydon
CT Maidstone
CV Leicester
CW Manchester
DA Maidstone
DD Cardiff
DE Leicester
DG Cardiff
DH Manchester
DL Manchester
DN Leicester
DT Southampton
DY Leicester
E Maidstone
EC Maidstone
EH Cardiff
EN Cambridge
EX Cardiff
FK Cardiff
FY Manchester
G Cardiff
GL Cardiff
GU Southampton
HA Cambridge
HD Manchester
HG Manchester
HP Croydon
HR Cardiff
HS Cardiff
HU Leicester
HX Manchester
IG Cambridge
IP Cambridge
IV Cardiff
KA Cardiff
KT Croydon
KW Cardiff
KY Cardiff
L Manchester
LA Manchester
LD Cardiff
LE Leicester
LL Cardiff
LN Cambridge
LS Manchester
LU Cambridge
M Manchester
ME Maidstone
MK Cambridge
ML Cardiff
N Cambridge
NE Manchester
NG Leicester
NN Cambridge
NP Cardiff
NR Cambridge
NW Croydon
OL Manchester
OX Southampton
PA Cardiff
PE Cambridge
PH Cardiff
PL Cardiff
PO Southampton
PR Manchester
RG Southampton
RH Maidstone
RM Maidstone
S Leicester
SA Cardiff
SE Maidstone
SG Cambridge
SK Manchester
SL Croydon
SM Croydon
SN Southampton
SO Southampton
SP Southampton
SR Manchester
SS Maidstone
ST Leicester
SW Croydon
SY Cardiff
TA Cardiff
TD Cardiff
TF Leicester
TN Maidstone
TQ Cardiff
TR Cardiff
TS Manchester
TW Croydon
UB Croydon
W Croydon
WA Manchester
WC Cardiff
WD Cambridge
WF Manchester
WN Manchester
WR Cardiff
WS Leicester
WV Leicester
YO Leicester
ZE Cardiff

Companies in Wales, Scotland or Northern Ireland that are not in the four categories above should send their claims to the Cardiff unit.

Posted November 10, 2006

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