R&D tax credits > Client sectors > Administrative and support services

R&D tax credits for the administrative and support services industry

We have seen a rise in technologies that allow many companies to offer their services online as well as face to face. The ability to build, refine and evolve these platforms to respond to client need and competitor activity is key. If there are technical challenges then this can qualify as R&D expenditure – whether this is the challenge of scalability, data integration or client interface.

3,440

claims

£215

million

£62,500

Average claim value

Source HMRC R&D tax credits statistics 2020

What qualifies as R&D in the business administration sector?

We find qualifying R&D when businesses innovate to integrate mobile technologies and operating platforms. This often involves resolving conflicts within hardware or software, where there is a documented absence of a known solution. Businesses often have to create new encryption or security techniques that don’t follow established methodologies.

What businesses are there in the administrative and support service sector?

This sector includes the following types of business.

Rental and leasing activities
Employment activities
Travel agency, tour operator and other reservation service and related activities
Security and investigation activities
Services to buildings and landscape activities
Office administrative, office support and other business support activities

Do administration and support companies claim under both the SME scheme and the RDEC scheme?

Yes, administration and support companies can claim under either scheme depending on their size and other deciding factors. Of the R&D tax relief claims made in 2018-19 so far, 90% of them were under the SME scheme equating to 74% of the value claimed.

Can administration and support companies claim under the Patent Box scheme as well?

Yes, administration and support companies that have already claimed for R&D tax credits might find that they could claim even more by applying for the Patent Box scheme. In 2018-19, so far, only 65 companies claimed under Patent Box, totalling £74 million in benefit.

Administrative and support services case studies

AnyVan

Industry: Logistics

AnyVan’s technology platform has enabled them to stay ahead of the competition but the development work is always complex and comes at a significant cost to the business
GovGrant’s review identified some significant areas of qualifying expenditure which had previously been overlooked, resulting in a sizeable additional benefit for AnyVan

Read full AnyVan case study