In this guest blog post, Nigel Holmes, Tax Partner at Armstrong Watson, outlines the recently published R&D (research & development) tax relief statistics – could you be suitable for a tax relief claim?
As in previous years HMRC has published the R&D tax relief statistics. The headlines are:
- Since the introduction in 2000 £14bn in tax relief claimed
- Nearly 50,000 companies have made claims
- In 2014-15 there were 22,445 claims, up from 18,630 in the previous year
- In 2014-15 the support totalled £2.45bn, up 38% from the previous year
- The manufacturing, science and technical, and IT sectors continue to make up the majority of the claims (75%) and the value of the claims (77%)
These two reliefs, one for SMEs and one for large companies, are providing valuable support for R&D in the UK. Whilst there are still many companies failing to claim, or not maximising their claims, the increase in the number of claimants is to be welcomed. HMRC continue to look for ways to encourage more claimant companies.
Any company who has developed an innovative product or process, or even has tried and failed to develop such, should seek advice about claiming. The process is straight forward once you have obtained advice.