Posted: October 26, 2018
According to HMRC, claims for research and development (R&D) tax relief have increased in recent years with 43,040 claims having been made in 2015-16, a 23% increase from 2014-15.
R&D tax reliefs can be claimed by companies working on innovative projects that seek to contribute to an advancement in science and technology.
R&D tax relief reached £3.7bn in 2015-16 and, according to partial data, £3.5bn has been claimed for 2016-17 so far. This number is expected to increase as more returns are processed and will be revised and complete in autumn 2019.
The rapid rise in claims is likely due to adjustments made to the small and medium enterprise (SME) made in 2012, which removed the minimum requirement of £10,000 R&D expenditure, allowing more companies to be eligible. SME claims have made up 34,060 of the 39,960 claims for 2016-17 to date.
Of the claims for 2016-17, 71% arose from the manufacturing, professional, scientific and technical, and information and communication sectors.
Research and development tax relief is a generous tax initiative for innovative firms. For more information, contact partner Tom Saltmer
For comprehensive information on research and tax development statistics, click here