Although research and development (R&D) and logistics aren't obvious bedfellows, the clever bods at Baker Tilly have pointed out that despite investment in R&D by UK companies having tripled in the past decade to £1.2bn, the amount of tax relief claimed by those in road transport remains nominal.
Just 135 claims for R&D tax relief (or credits as they are also known) were made by SMEs in the transport, storage and communications sector in the period, amounting to just £5m compared with the £420m claimed by SMEs in all sectors during the past decade.
Baker Tilly said that while R&D tax relief may be perceived as the preserve of manufacturing, science and the technology sectors, any eligible company can deduct up to 225% of qualifying expenditure when calculating their profit for tax purposes, and its highly likely those in logistics are missing out on trimming their tax bill.
Activities that likely qualify include investment in process improvement; investment in software and overheads associated with R&D operations. Certainly The Hub can see likely applications for the first two within toad transport.
Tony Summers, Baker Tilly's head of transport and logistics, said: "There are likely many firms in the logistics sector who are unaware they they may qualify for this type of tax relief.
"Claims can even be backdated for up to two years, for companies struggling with cashflow difficulties, this relief can provide a much needed lifeline."