According to new figures, companies in some parts of the country are missing out on millions of pounds of research and development (R&D) tax savings every year compared to other firms across the UK.
R&D tax relief specialist Jumpstart found that, despite a jump of 37 per cent year on year in the total tax credits claimed in relation to R&D in 2014-2015, new analysis of HMRC data for FYE 2015 showed that a company's location had a major impact on their claim levels.
Those based in the North West, for example, accounted for just 9.9 per cent of total claims and only 5.9 per cent of the total tax benefits claimed.
Russell McGrath, client engagement manager for Jumpstart in the North West, said: "Whilst it’s encouraging to see many companies in the North West availing of the R&D Tax Credits scheme, these latest HMRC figures are an alarming demonstration of just how much North West companies are losing out in terms of tax savings compared to companies throughout the rest of the UK.
"Of the 22,445 claims across the UK totalling £2.45 billion in tax benefits, only 2,200 claims came from companies in the North West and resulted in just £130 million back," he said.
Companies located in London and the South East of England made the highest level of claims in the year, with London firms accounting for 19.1 per cent of all claims and those in the South East of England accounting for 17.9 per cent of claims
Mr McGrath added: "Whilst uptake of the UK Government’s research and development tax relief scheme is increasing across the UK as a whole and is very healthy in certain regions, companies in the North West are clearly not reaping the full benefits of the scheme."