HMRC has released its initial report detailing Research and Development tax credit claims, which shows a dramatic rise in SMEs claiming Research and Development Tax Credits. An incredible £26.9bn has been awarded to UK businesses since 2001, with 300,000 claims being submitted in this time frame.
You can find all of the figures stated in this article in HMRC’s report on Research and Development Tax Credits Statistics 2019 and find out more about what R&D Tax Credits are, whether you might have an eligible claim and how much you can claim by visiting our page on Research and Development Tax.
The latest full year’s figures are below:
- Total R&D relief claims: 52,355 (up 20%)
- Number of SME claims: 45,045 (up 22%)
- Total tax relief claimed: £4.4bn (up 14%)
One of the most interesting figures in the report is the number of first-time claims from SMEs; 12,120 companies made a claim for the first time, which shows the improved awareness of R&D tax relief amongst SMEs. This is perhaps due to the work of accountants and tax advisers – like Ascendis – being more proactive and doing more to help their clients the tax relief they are eligible for.
Only 1% of active UK companies claim R&D tax relief.
Whilst the figures are extremely positive and show signs of SMEs being educated on the type of expenditure that can be claimed, there is still a huge opportunity for UK companies to submit claims. It is estimated that only 1% of all active UK companies have claimed R&D tax relief, which shows – regardless of the recent increase in claims – there is still a lot of work to be done in order to educate SMEs on their eligibility for this relief and the opportunities that R&D tax credits can create for them.
Did you claim?
Many SMEs are still not aware that they have an eligible claim and those that do submit a claim often don’t include all eligible expenditure.
Remember, you do not have to be a tech company, investing in a unique product or even investing in anything new; R&D expenditure includes any capital invested into the research and improvement of existing products and processes.
Ascendis have been undertaking R&D tax claims for many years and have a 100% success rate with these. We have developed an effective and efficient process which enables you to concentrate on your business whist Ascendis takes care of the claim.
If you’re unsure whether you are eligible to claim research and development tax credits, get in in touch with us today to arrange a free consultation.