Regional SMEs save £71m thanks to Champion’s R&D advice

SMEs across the North West and beyond have identified more than £71m in research and development (R&D) tax relief thanks to Champion Accountants’ tax and advisory expertise.

R&D tax relief supports companies that work on innovative projects, with Champion’s specialist R&D tax advisors supporting clients in sectors as diverse as interior design, construction, technology, and manufacturing.

The largest R&D tax credit awarded to a Champion client amounted to more than £560,000. With many SMEs still navigating ongoing challenges and recovering from the impact of the pandemic, R&D tax relief can be a lifeline.

Claims can be made for projects up to two years after the accounting period during which the activities took place. This means that many businesses in the region may be eligible to claim for past projects, even if they were unsuccessful.

Champion Accountants, which has practices in Manchester, Chester, Preston and Blackpool, has a 100 per cent success rate, meaning that every R&D tax relief claim submitted to date has resulted in a tax reduction or cash payment.

Manchester Union Brewery used the Government scheme to generate capital to continue developing its lager products, fine tuning their taste, colour, strength and body to create the perfect Manchester brew.

Ian Johnson, head brewer at Manchester Union Brewery, said: “We didn’t have any experience of claiming R&D tax relief until Champion, and with their existing knowledge of how breweries work, they suggested it to us. The process was extremely simple; we provided the team with details of how we work over the course of a year; Champion drafted our application for us, we reviewed it and submitted it.

“As they’re so knowledgeable about brewing and the drinks manufacturing industry, there was no need to explain our methods of working in any great depth – they already understood and knew how to pull all the right information together on our behalf. Champion made this whole experience really easy for us, and now we have extra capital available to put towards the day-to-day running of our business.”

Bolton’s Lea Scaffolding and Access has also made a successful claim thanks to Champion Accountants.

Karen Jones, director at Lea Scaffolding and Access, said: “With the claim having been successful, we’re able to use the money for capital growth. We’ve invested into additional equipment, which will enable us to scale up more quickly as we’ll have the opportunity to enter more markets. Completing this process has created a lot of excitement for us, as our potential has expanded.

“This is the first year we’ve submitted a claim, but this is something we expect to become normal practice, year on year, using the Champion team’s expertise. They are always on hand for anything we need, and the team’s knowledge goes far beyond anything I’ve ever encountered before.”

David Herd, group director and lead R&D tax advisor at Champion Accountants, said: “R&D tax relief is still incredibly misunderstood. Even among those who are aware of it, there’s a misconception that it only applies to a certain type of business – one that employs people in white coats who work in a lab. That just isn’t the case. Construction companies and interior designers have made successful claims with us, with the relief available for anyone who has invested in researching or developing an advance in their field.

“With businesses still feeling the pressures of the pandemic, it’s more important than ever to capitalise on the savings you are entitled to. We can identify from a 15-minute conversation whether an application will be successful or not.”

Visit www.championgroup.co.uk