Small and medium enterprises across South Yorkshire are failing to claim tax relief when they invest in research and development projects.
Research by Sheffield-based accountancy firm BHP Chartered Accountants shows a large number of businesses are entitled to claim cash back from HM Revenue & Customs.
R&D tax credits are available to businesses across all industries investing in a vast range of projects including patents, new manufacturing processes and environmental improvements.
Figures from HMRC reveal that although R&D tax relief claims are increasing, with 15,820 companies claiming £1.36bn in 2012/13, businesses in Yorkshire and Humberside accounted for just 6.7 per cent of the claims made.
Chris Humphreys, tax partner at BHP Chartered Accountants, said: “The reality is there are millions of pounds going unclaimed every year.”