Small businesses in the Midlands are missing out on millions of pounds of government tax breaks designed to encourage innovation in the UK, according to research by business advisory firm Deloitte.
Nearly all (89 per cent) of eligible small and medium sized enterprises (SMEs) were not taking advantage of research and develop-ment (R&D) tax relief, compared to 55 per cent of companies nationwide.
Of the firms that had not claimed R&D tax relief, 41 percent employed less than 50 technical staff, suggest-ing that the scheme is not reaching the smaller enter-prises that could benefit most from the cash flow boost of the repayable cash credit.
The most cited reason for not claiming the relief was lack of knowledge of the R&D tax credit system. ..SUPL: