David O’Keeffe, head of KPMG’s R&D tax credits team cautioned that businesses risk losing out on two thirds of their potential Research and Development tax credit claims if they fail to take action now. However, it seems that many firms remain unaware of the nature and scale of activities that qualify for the tax credits.

“The time required to see the R&D tax credit claim process through makes it important to act early. From March 31 next year, companies will only be able to claim R&D credits for the previous two years, as opposed to the current six years available. Miss the deadline and you miss out on the rebate," stated O’Keeffe.

He added: “Part of the reason why it can sometimes take a while to assemble a claim is that many companies are unaware of exactly what sort of activities qualify. When people think of R&D they often think of pharmaceutical companies and the classic ‘men in white coats’. In fact the definition is much broader than many people realise. The range of companies that can claim the relief is wide and includes supermarkets, food manufacturers, insurance companies, banks, airlines and engineering services companies.”

O’Keeffe concluded: “Time’s not up yet for companies to get the maximum benefit from these R&D tax credits but the clock is certainly ticking. Companies should not assume that they don’t qualify and if they do seek to make a claim then professional advice can make the process considerably easier.”