HMRC has today released the latest batch of figures for the R&D tax credit scheme. And although the figures do not give a complete picture of 2017-18 claims due to the nature of when businesses can claim these tax credits, all indications are that the number and amount of these claims have risen again.
Since 2000-01 over 300,000 R&D tax credit claims have been made with the tax benefit standing at a staggering £26.9 billion.
So far, the total of the amount claimed through both the SME and RDEC schemes is £4.3 billion for 2017-18. Predictions have been made that once the window for claiming closes and HMRC has processed all the claims, this should rise to be in the region of £4.95 billion compared to £4.4 billion in 2016-17.
The number of SME claims currently stands at 42,075 and RDEC claims 6,555 which totals 48,635 claims. The completed 2016-17 figures show that SME claims rose by 22% and RDEC claims by 12%, compared to the 2015-16 data.
68% of all claims (SME and RDEC) came from ‘manufacturing’, ‘professional, scientific and technical, and ‘information and communication’.
In terms of the SME scheme these were the top 5 sectors:
- Information and communication 25%
- Manufacturing 24%
- Professional, scientific and technical 19%
- Wholesale 11%
- Admins and support services 6%
Southern England continues to make the most claims on the SME scheme with the North West making the highest claims for Northern England. The top 5 regions were:
- London 8,290 claims (20%)
- South East 6,330 claims (15%)
- North West 4,385 claims (11%)
- East of England 4,130 claims (10%)
- West Midlands 3,635 claims (9%)
Our home county of Yorkshire and the Humber made it to 7th place with 2,910 SME claims which equate to 7% of the total SME claims. However, this is likely to increase and exceed the 3,030 claims in 2016-17 which saw a 54% rise in claims in the region.
Tip of the iceberg?
It has been estimated that only 20% of eligible companies claim R&D tax credits, so the reality of the total amount of R&D being untaken in the UK is much higher than these figures show, and many businesses are missing out on this valuable tax benefit.
We calculated earlier this year that there are 419,000 SMEs based in Yorkshire and the Humber and with 3,030 claims that equate to only 0.7% claiming in 2016-17!
If you think you are one of those missing out on this valuable tax benefit, contact us for a free, no-obligation assessment. To find out more contact TEQ Group today on 01423 815299 or click the button below and we’ll be happy to offer some advice.