BUSINESSES in the Midlands could miss out on around £30 million in tax relief if they fail to claim, according to Worcester financial experts Rabjohns LLP.

Small and medium-sized businesses within the region could be entitled to a slice of the millions in unclaimed tax relief for research and development, said Rabjohns’ business tax specialist James Geary.

“Nationally, there is a staggering £125 million in unclaimed research and development relief from 2007 for small and medium-sized businesses, and at a conservative estimate, £30 million of this belongs to Midlands technology businesses,” he said.

“All this could be lost simply because many firms are either not aware relief exists, or don’t realise the innovative work they are performing falls within its scope.”

Research and development work is not confined to laboratory technicians in white coats but includes any innovative product development that seeks to break new technological ground.

There is a two-year time limit for claiming research and development tax relief, so companies can adjust their 2007 tax submissions to claim the relief if it applies.

For a small or medium enterprise that is spending £50,000 on qualifying research and development in one year, a claim for relief will now save the organisation corporation tax of nearly £8,000 or, for a loss-making company, could result in a cash payment of about £12,000 from the Government.

Alan White, chief executive of the Central Technology Belt, said: “We know that many small hi-tech companies and university spin-outs are finding cash-flow a big issue right now but an unexpected windfall in the form of a tax rebate for research and development would obviously be welcomed by many of these companies.

“In addition, we’d also urge technology-based businesses to ensure that they are fully aware of all available grant funding.”

To aid firms with similar claims and financial issues, Rabjohns, of College Yard, Worcester, has launched a new science and technology group, which will provide accountancy, tax and strategic support to businesses in these sectors.