Manchester-based sister companies, RD Tax Solutions and Catax Solutions, specialists in research and development (R&D) and capital allowances tax relief respectively, have today merged to form one brand, Catax.
Catax, which employs just under 100 staff and has more than 12,000 clients around the UK, is now a one-stop shop for any company seeking to reclaim tax relief on the back of R&D activity it has performed or, where commercial property is owned, via unused capital allowances. Under the new brand, the ownership, management and operational structure will remain the same.
R&D tax relief is a key focus of the current Government, which announced in its recent Budget plans to make it easier for UK firms to make claims in this area. To date, Catax has secured its clients an average R&D tax benefit of £39,000 but HMRC figures show that fewer than 1% of eligible UK companies are taking advantage of this relief.
Alongside R&D tax relief, Catax will continue to help companies and individuals that own commercial property realise any unused capital allowances tax relief. Capital allowances, which can be claimed on a commercial property’s “intrinsic fabrication”, are another area overlooked by too many UK businesses, with the average client benefit to Catax clients currently £46,000.
To date, Catax has recovered more than £136m in both R&D and capital allowances tax relief for its clients. As it goes from strength to strength, it expects to recover twice that between now and 2019 under the new brand and through its key introducers: Catax is currently in formal partnerships with the ICAEW, the Law Society, IFA and Members of the Association of Chartered Certified Accountants (ACCA) Marketplace scheme.
Mark Tighe, CEO, Catax commented:
“Bringing together RD Tax Solutions and Catax Solutions is not just about streamlining our proposition and building a stronger, more recognisable brand but making it easier for our clients to effortlessly move from one specialist tax relief to another. There is already a degree of crossover between the two companies as many clients performing R&D will also own their own commercial properties, but with the new Catax brand we hope to further increase awareness of these highly valuable but still overlooked reliefs. Capital allowances are a right under UK law while the need for companies to make more of R&D tax relief is a growing focus for the Government as it seeks to future-proof the UK economy. With the Government firmly behind R&D, exciting times lie ahead.”