HMRC has just released provisional R&D tax credit data for 2019. The statistics measure the amount of tax credits claimed by the UK’s most innovative businesses during the previous 12 months.

The statistics in the report are largely positive; increasing number of R&D claims demonstrating more innovative businesses than ever are making claims across a wide range of industry sectors.

However, the ever-increasing level of claims and new claims in particular, also suggests that there are companies continuing to miss out on the valuable tax reliefs available.

Key R&D tax credit trends

  • The number of claims by UK SME businesses accessing the tax credits system has increased by 22%.
  • 77% of all claims are from SMEs, and there’s been a welcome 15% increase in the number of first time SME applications.
  • The ‘Manufacturing’, ‘Professional, Scientific and Technical’, and ‘Information and Communication’ sectors continued to have the greatest volume of claims, making up a total of 68% of claims.
  • Statistics for niche sectors/industries sectors appear low, indicating companies are missing out, possibly because they assume, they cannot claim if not in technology, manufacturing or science sectors.
  • Just over 40 per cent of claims are made by companies less than 10 years old. This suggests that businesses still perceive R&D tax credits to be predominantly for young companies. However, more established companies continue to innovate year on year to remain competitive and may be failing to recognise their entitlement to claim.

Our thoughts

R&D Tax Credits can help companies grow and can boost employment in the economy as a whole. The continuing increase in the number and value of R&D Tax Credit claims is a welcome development, but we believe that there are still thousands of companies that aren’t claiming what they are entitled to, mainly because they are not well-informed about the scheme.

How we can help

We have generated significant tax refunds and savings for clients investing in R&D. The projects have ranged from the development of artificial snow candles to Recycling – Landfill diversion and Polymer identification.

Our team of R&D tax credit specialists make claiming easy. Every claim is managed by an experienced consultant who advises you on the entire process. We can maximise your R&D claim because our expert consultants can identify all of your qualifying projects and all your eligible expenses including costs that are often missed.

To speak to us about whether you can qualify for and R&D Tax Credits, please call us on 01275 867350. Alternatively, you can send us a message now.