Tax relief firm opens second Scottish base
A tax relief firm is to open a second office north of the Border as it looks to treble in size over the next three years.
Manchester-headquartered Catax, which works with firms to help them submit claims for research & development (R&D) tax relief, is to set up an office in Glasgow after seeing strong demand at its existing Edinburgh base.
The move comes as figures show R&D claims across the UK are increasing rapidly with a 52.2 per cent rise year-onyear. Catax said although the majority of companies in Scotland have developed a new product or process in the past few years and could potentially claim for tax relief, fewer than a third of eligible firms report doing so, well below the UK average of 45 per cent.
Catax chief executive Mark Tighe said tax relief helps businesses and the wider economy to grow, with the extra capital freed up often being used for further investment.
“As Brexit draws ever closer, it’s becoming apparent that the key to unlocking economic growth in Scotland is helping these firms realise they qualify for these incentives and helping them recognise that the rewards can be lucrative,” said Tighe.
R&D tax relief covers areas including software development, waste reduction initiatives, automation of processes and development of new products.
Potential items firms can claim tax relief for include staff costs, materials, utilities, travel costs and sub-contractor costs.
Catax has recovered more than £180 million of tax relief for clients.