Are you missing out on R&D tax credits?

September 19, 2017

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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 [email protected] for more information.

Rachel Moore

+44(0)1223 55 2276

[email protected]