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HMRC R&D tax credits statistics 2020 – our commentary

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 2018-19 so far. There is still time to make a claim, if you think you might qualify contact one of our specialist advisors.


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Source HMRC R&D tax credits statistics 2020

 


Claims since the schemes began


Updates to 2017-18 – compared to previous year

Due to the nature of the scheme, returns for the latest financial year reported (2018-19) can still be submitted past the cut-off date for the publication of these figures. As a result data for 2018-19 is not yet complete. To avoid misleading comparisons between years HMRC have compared the years 2017-18 to 2016-17 in their publication when discussing change between years, and 2018-19 when discussing in-year characteristics.


Claims in the tax year 2018-19 so far

The Manufacturing, Professional, Scientific and Technical, and Information and Communication sectors continued to have the greatest volume of claims, making up a total of 66% of claims and 71% 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.


To date £33.3bn in tax relief has been claimed through these schemes.

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Regional analysis of number and value of SME R&D tax credit claims, 2018-19

Based on government office region

 

Firms registered in London

Number of claims

Amount claimed £(m)

£84,823

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, 2018-19

Information & Communication

Number of claims

Amount claimed £(m)

£64,132

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.


Comments from our CEO, Luke Hamm