HMRC reveals increase in R&D tax credit claims
Recent figures published by HMRC have revealed the total number of claims for R&D tax credits has increased by 20%.
With the latest figures covering the 2017-18 tax year, whilst showing 48,635 R&D tax credit claims were made. Additionally, small and medium-sized enterprises (SMEs) made 42,075 claims, whilst 7,285 claims were made by large businesses.
According to HMRC, a total of 4.3 billion of R&D tax relief was claimed in 2017-18, corresponding to £31.3 billion of R&D expenditure.
HMRC found that R&D claims were concentrated in companies with a registered office in London, the South East or the East of England. It stated that the regional split was based on the registered office location, so may not be where all of the R&D activity took place.
Furthermore, the data also revealed that the most common way for SMEs to claim R&D tax credits is by making a deduction from corporation tax liability. With 23,640 claims being made this way in 2017-18. Just 7,600 claims were made for a payable credit.