SME R&D tax credit claims reach a whopping £1.3 billion!
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.
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The following table shows the growth in R&D tax credit claim numbers over this five year period
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
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?