Open navigation

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


HMRC’s hallmarks of Research and Development

In the recent HMRC consultation regarding the R&D tax credit cap for SMEs, they talked about a need to identify and rely on ‘Hallmarks’ of R&D to ensure that claims > Read more

HMRC confirms the State Aid rules for each new Covid-19 loan scheme

GovGrant sits on the Research & Development Consultative Committee (RDCC) to represent UK’s business when it comes to the operational delivery of the R&D tax relief schemes. This is an > Read more

When HMRC investigates – what does it tell us about our industry

HMRC recently reported on the outcome of a first tier tax tribunal case investigation into an R&D tax claim.