Borough’s research contribution to UK

WOKINGHAMand neighbouring Reading have been named two of the main contributors to research and development in the UK.

The ranking, based on research conducted by tax relief experts Catax, revealed that Reading contributes the highest amount of money to research and development out of all UK towns and cities at an average of £2,400 per person.

Wokinghamwas also placed on top with an expenditure of £1,667 per person, while Slough followed closely at £1,207.

Calculated in accordance with the ONS Estimates of population for the UK, the figures take the population of each region into account, meaning that while Manchester boasts the highest total output of £760million, its large populations means it spent 88.6% less than Reading per capita.

Mark Tighe, CEO of Cataz, said: “Reading is the UK’s leading light when it comes to innovation and investing in the R&D workforce.

“Thousands of companies will face financial difficulty in the coming months as the coronavirus crisis bites.

“It’s a tragedy that many of these companies will ultimately go bust without realising they could have claimed significant sums under the R&D tax relief scheme.

Mr Tighe added: “There needs to be more education among small businesses overwhat counts as R&D and how they can claim. A piece of software, a new innovative menu item in a restaurant or a simplified manufacturing process can all qualify.”

Any business that spends time and money developing new products, business processes or services can claim research and development tax incentives.

Past successful claims include a firm that developed a betterway of smoking salmon and an architectural practice that worked out how to help social housing providers reduce fuel poverty by creating energy-efficient buildings at lower cost.

The Government introduced its research and development tax relief scheme in 2000 to encourage investment in innovation.

Firms can choose to receive R&D tax relief as either tax credits, which help to reduce a limited company’s corporation tax bill, or a cash reimbursement from HMRC.

For more information about research and development tax relief log on to catax.com/ research-development