HMRC’s latest R&D tax credits figures show the number of claims continuing to increase, but the proportion of very small claims being made gives R&D tax credit consultancy, ForrestBrown, cause for concern.
Figures for accounting periods up to 2017/18 show 87% of R&D claims being made by SMEs, with an average value of £53,714. However, 77% of all SMEs made a claim worth less than £50,000 and 18% made a claim worth less than £5,000.
Jenny Tragner, director at R&D tax credit consultancy ForrestBrown, who is also a member of the R&D consultative committee, finds the number of claims being made worth less than £5,000 is ‘very surprising’ and suspects companies are sometimes being wrongly advised to submit small claims in the hope of mitigating risk in the eyes of HMRC.
‘Just because a claim is small doesn’t make it high-quality’, Tragner said. ‘Our concern for those making a very small claim is that we have seen a recent spate of adverts from spurious advisers mis-labelling what constitutes R&D. If you are an SME and you’ve made a very small R&D tax credit claim, we’d recommend choosing your adviser wisely to ensure your business is protected and receiving what it is due’, she added.
HMRC’s latest R&D tax credits figures show the number of claims continuing to increase, but the proportion of very small claims being made gives R&D tax credit consultancy, ForrestBrown, cause for concern.
Figures for accounting periods up to 2017/18 show 87% of R&D claims being made by SMEs, with an average value of £53,714. However, 77% of all SMEs made a claim worth less than £50,000 and 18% made a claim worth less than £5,000.
Jenny Tragner, director at R&D tax credit consultancy ForrestBrown, who is also a member of the R&D consultative committee, finds the number of claims being made worth less than £5,000 is ‘very surprising’ and suspects companies are sometimes being wrongly advised to submit small claims in the hope of mitigating risk in the eyes of HMRC.
‘Just because a claim is small doesn’t make it high-quality’, Tragner said. ‘Our concern for those making a very small claim is that we have seen a recent spate of adverts from spurious advisers mis-labelling what constitutes R&D. If you are an SME and you’ve made a very small R&D tax credit claim, we’d recommend choosing your adviser wisely to ensure your business is protected and receiving what it is due’, she added.
