The Chartered Institute of Taxation ("CIOT") have published their views on the barriers to small businesses claiming R&D Tax Credits. In the CIOT's view:
We agree that the factors identified in the consultation document – awareness, design, understanding and administration are matters affecting access to the tax relief. In particular, in our experience, the main barrier is awareness of the relief and an appreciation that it is of much wider application than the stereotypical lab scientists in white coats.
We suggest, therefore, that the main driver behind any reform should be an increased effort to break down the barrier of awareness and build an appreciation of the scope of R&D tax credits. All of HMRC, the professional bodies and agents have a role to play in this.
So the CIOT believe that lack of understanding is the ket barrier to small businesses making R&D Tax Credit claims.