Government tax reliefs and incentives designed to stimulate enterprise need to be redesigned as many companies are unaware of their existence or believe they involve too much
red tape, new research claims.
A poll by PricewaterhouseCoopers (PwC) of 350 privately owned firms found only 11% were taking advantage of tax breaks such as research and development tax credits, first year capital allowances and employee share scheme tax deductions.
Across nine named incentive schemes, an average of just 41% of businesses were aware they existed.
One third of companies for which R&D tax credits were relevant said that they had not claimed them due to perception that the application process is too complex,...