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SME R&D tax credit claims reach a whopping £1.3 billion!

25 Sep 17

Government has released their latest statistics on the value and volume of R&D tax credit claims and it shows that an ever greater number of small companies are staking claims. SME R&D tax credit claims reach a whopping £1.3 billion! Here are the latest highlights from the report: “Research and Development Tax Credits Statistics - September 2017

In 2011-12 there were 10,030 R&D tax credit claims from SMEs (Small and Medium Enterprises - to qualify as an SME a company must have under 500 employees).

In 2015-16 there were 21,865 SME claims – more than double the number in 2011-12.

The following table shows the growth in R&D tax credit claim numbers over this five year period

Table showing the growth in R&D tax credit claim numbers over five years
 

It has long been considered by many specialist R&D tax credit consultants that too many SMEs are oblivious to the R&D tax credit scheme and therefore not benefiting. At least some of this increase in the number of SMEs making R&D claims must be attributable to specialist R&D consultants raising awareness by seeking to find and advise new clients.

How much is the SME R&D scheme worth?

The amount paid out has also increased significantly, reaching a whopping £1.3 billion in 2015-16. That is a 31% increase over the prior year where the total value paid out reached the £1 billion milestone.

Most SMEs claim under the SME scheme which is the most generous, although there are a few instances where regulations dictate that they must claim under the less generous large company schemes. 

A profitable SME can reduce its corporation tax bill by 26% of the value of its investment in qualifying R&D activities. A loss making company can claim a cash payment worth up to 33% of the value of its investment in qualifying R&D activities.

The following table shows the total value of SME claims per year over the past five years

Table showing the total value of SME claims per year over five years
 

Follow this link for more info on >> Claiming R&D tax credits and the role played by specialist R&D consultants.

Are you ready to find out if you qualify or how much your R&D claims could be worth?

 

Contact Us Today

For more information or to contact us - call us on 0771 9439 229 - or send us a message

CONTACT US TODAY:

For more information on claiming R&D tax credits or our business advice and support services call us on 0771 9439 229

Or send us a message

PO Box 53448,
London,
SE18 9DE

ACCREDITATIONS & OWNERSHIP

Our consultants are members of London Group Business Advisors and Home Counties Business Advisors.

Linda Eziquiel is a Fellow of the Institute for Independent Business and a Principal Consultant at RandDTax (specialists in Research and Development tax credits) – UK co. reg. no. 08160439.

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