The latest government statistics show that the number of claims for R&D tax relief by SMEs across the UK has risen by nearly a quarter. The number of claims for R&D tax credits is up from approximately 16,000 in the previous year, to approximately 20,000.
The latest government statistics show that the number of claims for R&D tax relief by SMEs across the UK has risen by nearly a quarter. The number of claims for R&D tax credits is up from approximately 16,000 in the previous year, to approximately 20,000. This represents a rise in the amount claimed by £380,000 to £1.75bn.
London, South-East and the East made 46% of all the claims, continuing to make the highest number of claims. Manufacturing continued to represent the highest number of claims at 37%, with professional, scientific and technical at 24%, and information and communication at 20%.
Introduced in 2000, R&D tax credits were designed as a tax relief to encourage greater R&D spending and innovation. Since then, almost 120,000 claims have been made, with more than £11.4bn claimed in tax relief. The popularity and efficiency of these schemes led last year to the chancellor announced an increase in R&D tax credits to 230 per cent. This meant that for each £100 of qualifying costs, the corporation tax paid by SMEs on income could be reduced by an additional £130 on top of the £100 spent.
Colin Smyth, Baker Tilly tax partner, said: ‘These figures are great news for business, and show that real confidence is beginning to return to the UK economy. Drilling down into the regions, it is interesting to see that although the South and East still dominate the number of claims, Wales, Scotland and the North-East whilst improving, still have some way to go. It could be the case that the message about tax breaks simply isn’t getting through to all regions, and so I still think there’s work to be done to raise awareness and ensure that regional businesses aren’t missing out on these valuable incentives.’
Brian Williamson, managing director at Jumpstart, said: ‘Last year we predicted an increase in the amounts claimed to £1.8 billion, and these most recent figures are very close to that projection. There is no doubt that awareness of the Government's existing tax relief programme is increasing. We have already made substantial progress in disseminating this message across the country and we forecast enormous future growth as major players in the UK.’
The latest government statistics show that the number of claims for R&D tax relief by SMEs across the UK has risen by nearly a quarter. The number of claims for R&D tax credits is up from approximately 16,000 in the previous year, to approximately 20,000.
The latest government statistics show that the number of claims for R&D tax relief by SMEs across the UK has risen by nearly a quarter. The number of claims for R&D tax credits is up from approximately 16,000 in the previous year, to approximately 20,000. This represents a rise in the amount claimed by £380,000 to £1.75bn.
London, South-East and the East made 46% of all the claims, continuing to make the highest number of claims. Manufacturing continued to represent the highest number of claims at 37%, with professional, scientific and technical at 24%, and information and communication at 20%.
Introduced in 2000, R&D tax credits were designed as a tax relief to encourage greater R&D spending and innovation. Since then, almost 120,000 claims have been made, with more than £11.4bn claimed in tax relief. The popularity and efficiency of these schemes led last year to the chancellor announced an increase in R&D tax credits to 230 per cent. This meant that for each £100 of qualifying costs, the corporation tax paid by SMEs on income could be reduced by an additional £130 on top of the £100 spent.
Colin Smyth, Baker Tilly tax partner, said: ‘These figures are great news for business, and show that real confidence is beginning to return to the UK economy. Drilling down into the regions, it is interesting to see that although the South and East still dominate the number of claims, Wales, Scotland and the North-East whilst improving, still have some way to go. It could be the case that the message about tax breaks simply isn’t getting through to all regions, and so I still think there’s work to be done to raise awareness and ensure that regional businesses aren’t missing out on these valuable incentives.’
Brian Williamson, managing director at Jumpstart, said: ‘Last year we predicted an increase in the amounts claimed to £1.8 billion, and these most recent figures are very close to that projection. There is no doubt that awareness of the Government's existing tax relief programme is increasing. We have already made substantial progress in disseminating this message across the country and we forecast enormous future growth as major players in the UK.’
