A LEADING BUSINESS advisor from Whittington is urging companies to think about tax relief.

Louise Hudson, founder and director of Hudson LM Limited, said many people were still unaware of research and development (known as R&D) tax relief and the major savings which could be made.

Hudson LM, based in Whittington near Oswestry, specialises in online accounting, limited companies and agricultural businesses and works with clients across Shropshire, Cheshire, Powys and North Wales.

"Over the past year we have been helping clients make successful claims for R&D and the largest claim so far within the practice resulted in a client saving more than £30,000 in corporation tax," said Louise.

"I would urge anyone who hasn't already considered the tax relief available on R&D to give it serious thought and take some professional advice to find out what is available to them.

"Companies can claim enhanced tax relief from corporation tax for qualifying activities on projects undertaken in a business relating to advances in science and technology - regardless of whether the projects are successful.

"It's a very valuable relief for companies, worth 230 per cent of qualifying expenditure, and is aimed at encouraging innovation. It's quick to apply for but does require specialist knowledge to identify suitable R&D projects and make a claim.

"Many small and medium-sized companies are still not claiming what they are entitled to because of a lack of awareness among businesses and their accountants.

"Relief is only applicable to limited companies but something to bear in mind is R&D qualifying activities cover much more than those carried out by people in white coats!

"A good example of this is one of our clients who paid someone to create a bespoke online link known as an APl which connected their stock control software to their website ordering system. This creation fitted the R&D criteria."

Louise added that qualifying expenditure could include staff wages, consumables, external labour and software. She said even companies who were loss-making but involved in R&D were entitled to claim a tax credit.

"We have helped clients make successful claims across a range of sectors, including manufacturing, groundworks, brewing and distilling of beverages, farming, catering and fitness, so it's open to any limited company working in pretty much any field and certainly worth taking the time to look into," she added.