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Business loan for firms failed by tax scheme
Reported on Wed, 26 Jul 2006
Small and medium-sized enterprises (SMEs) are missing out on tax relief schemes, according to new research, but a business loan could help those firms who have lost out financially.
Only 11 per cent of SMEs claimed tax breaks this year, according to research from PricewaterhouseCoopers.
The survey of 350 firms revealed that 40 per cent of SMEs do not know that tax relief schemes exist.
Kevin Nicholson, of PricewaterhouseCoopers, said: "The Government is spending a lot of money on tax breaks, but there is still no real evidence that the tax regime can be used to encourage enterprise among smaller companies.
"While larger firms have experts who can spend time calculating how much they could receive from R&D tax credits, smaller businesses do not have these resources."
Taking out a business loan could help SMEs to fund developments that could allow them more free time to concentrate on tax relief schemes.
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