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HMRC R&D tax credits statistics 2018 – our commentary

The government is giving more of a boost than ever before to the UK’s most innovative companies, according to the latest statistics. HMRC has provided information on the number of companies claiming research and development (R&D) tax credits and the value of claims for the year 2016-17 so far. There is still time to make a claim, if you think you might qualify contact one of our specialist advisors.

 
 

Key points to show the value of this opportunity to innovative business in the UK

Source HMRC R&D tax credits statistics 2018

 


Claims since the schemes began



Updates to 2015-16
– compared to previous year

 
 
 


 
 
Due to the nature of the scheme, returns for the latest financial year reported (2016-17) can still be submitted past the cut-off date for the publication of these figures. As a result data for 2016-17 is not yet complete. To avoid misleading comparisons between years HMRC have compared the years 2015-16 to 2014-15 in their publication when discussing change between years, and 2016-17 when discussing in-year characteristics.

Claims in the tax year
2016-17 so far

 
 
 
 

These sectors continued to have the greatest volume of claims, making up a total of 71% of claims and 75% of the total amount claimed


R&D claims are concentrated in companies with a registered office in London, the South East or the East of England 45% of all claims and 60% of the total amount claimed



Regional analysis of number and value of SME R&D tax credit claims, 2016-17

Based on government office region



 

Firms registered in London

Number of claims

 

Amount claimed £(m)

 
£74,695
Average claim value for SMEs

London


Regional allocation is based on the postcode of the company’s registered address, which might not correspond to where the R&D activity takes place, so caution must be exercised when interpreting these figures. Figures exclude claims where region is not known. Numbers are rounded to the nearest 5 and amounts are rounded to the nearest £5m.


Industry sector analysis of number and value of SME R&D tax credit claims, 2016-17

Information & Communication

 

Number of claims

 

Amount claimed £(m)

 
£55,978
Average claim value for

Information & Communication





This coding might not correspond to the industry sector of the R&D activity, so caution must be exercised when interpreting these figures. Figures exclude claims where industry sector is not known. Numbers are rounded to the nearest 5 and amounts are rounded to the nearest £5m. Where the number of claims is less than 5, or the value of claims is less than £5m we have excluded that sector from our results. This is the case for the Mining & Quarrying and Public Administration, Defence and Social Services sectors.


To date £21.4bn in tax relief has been claimed through these schemes.

Don’t miss out. You have nothing to lose by contacting us. But a lot to gain.

 

Comments from our CEO, Luke Hamm


Good news in HMRC R&D tax credits report, but new policies needed to boost growth

Commenting on HMRC’s analysis of UK R&D tax credits in its report, published today Luke Hamm, CEO of innovation tax specialist GovGrant, which has helped businesses claim back over £200m for their R&D, sai...

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Government must do more to support innovation or risk losing our best businesses to competitors

Innovation tax specialist GovGrant comments on the annual HMRC tax credits statistics and says Government needs to demonstrate that it really is pro-business. Commenting before the publication today (10 October) o...

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GovGrant urges action on innovation tax credit fraud but to keep the claim process simple

GovGrant CEO Luke Hamm has welcomed HMRC’s (HM Revenue & Customs) decision to crack down on abuse of the R&D tax relief system. GovGrant, which is a member of the HMRC Research and Development Consultative...

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All-Party Parliamentary design & innovation group
British Plastics Federation
gtma
Insurtech UK
Hertfordshire Chamber of Commerce
British Marine