33 percent of SMEs aren't taking advantage of tax breaks, according to the new report. Image courtesy of sxc.hu
According to new research by RSM Tenon
Business Barometer, over a third (33 percent) of SMEs are unaware of tax breaks which could benefit them. The reduction in corporate tax was cited as the most valued tax break
by 33 percent of businesses, followed by business rates
at 13 percent.
Despite the Government increasing research and development
(R&D) tax credits by 225 percent last April to help encourage innovation among SMEs, just one in 10 rated these as the most beneficial to their business.
The relaxation in the Enterprise Investment Scheme
(EIS) was voted the least popular tax break with only one percent saying it is the biggest tax break for their company. SMEs need to speed up growth.
The latest figures from the British Chambers of Commerce
(BCC) of 8,000 small and medium-sized firms reveal that while businesses are growing, it is at a rate that is too slow for a sustainable recovery.
The survey reported a small rise in exporting activity among manufacturing firms and the service sector in the three months to the end of June, however domestic activity showed little net overall change.
Employment also showed a mixed picture. The balance of manufacturing firms hiring stayed the same level as the previous quarter at 16 percent, however the balance of service sector firms that had taken on staff rose to 10 percent.
Director general John Longworth commented: "Growth cannot wait. The Government must take an imaginative and brave approach to stimulating the economy and helping businesses thrive."