Are you missing out on R&D tax credits?

19 September 2017

By Rachel Moore

The latest statistics from HMRC show companies are increasingly claiming Research & Development (R&D) tax credits. Just as a reminder of what this is all about, companies that are engaged in qualifying R&D activities can claim tax reliefs or credits on the cost of these activities. SME UK businesses can receive up to £33 of additional cash support for every £100 of qualifying R&D costs, and for large UK companies a cash incentive of up to £9 for every £100 of R&D spend.   According to the statistics, R&D claims were claimed for nearly £22bn of R&D in 2015/16, an increase of 20% from the previous year. The figures show that the UK Government spent £2.9 bn in the year on R&D reliefs, which is an increase of 20% over 2014/15. This reflects an increase in the number of SMEs claiming the relief, the generous rates of relief available and the ability for large loss making companies to obtain a cash benefit.

26,255 companies made claims in 2015/16, the highest since the scheme began in 2000-01, but this still means that the majority of UK businesses are not claiming.  While there has been a noticeable increase in SME applicants, many companies are still missing out as they are not aware of the R&D tax credit regime, incorrectly believe they don’t qualify or find it too hard to claim.

We have seen over the last year a significant increase in the number of claims in particular areas including software development, manufacturing and Oil & Gas service companies. We are helping a range of  businesses:

  • understand if they qualify for the various R&D schemes;
  • analyse and prepare claims; and
  • make sure they are effectively claiming the appropriate reliefs.

To make it easier for the smaller businesses, to check if they are eligible and claim R&D credits, PwC’s online tool Nifty R&D (www.niftyforms.co.uk) significantly reduces the time and cost to businesses of preparing claims. Find out what your benefit could be using our calculator, visit www.niftyforms.co.uk or email us at support@niftyforms.co.uk for more information.

Rachel Moore

+44(0)1223 55 2276

rachel.moore@pwc.com

Twitter
LinkedIn
Facebook
Google+

Comments

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated and will not appear until the author has approved them.