R&D Tax Relief Claims are On the Up
Have you Made Your R&D Tax Relief Claims?
Claims for research and development tax relief are steadily marching upwards, according to figures released by the taxman.
Last year, companies made 22,445 claims, up 38% on the previous year and now totalling £2.45bn in relief. SMEs have made about four in five claims since the scheme was launched in 2000.
However, while the R&D tax credits are undeniably incentivising innovation among UK businesses, there does appear to be a regional imbalance of claims. Firms in London, the South East and the East of England continue to benefit most from the scheme, but HMRC has countered this by pointing out many companies have head offices in these regions and this does not necessarily indicate where the money has been invested.
In terms of sector, 75% of claims and 77% of the total amount claimed last year went to the ICT, professional, scientific and technical and manufacturing sectors.
While R&D tax relief is a great way to invest in innovation, in our experience a significant number of businesses are unaware of the scheme – which could bring them major benefits. If you would like to know more about how the scheme works, and whether you could qualify for it, get in touch with us today.