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HMRC R&D Tax Credit statistics: September 2021

Each year, (around September/October) HMRC release in-depth statistics on Research and Development (R&D) Tax Credit claims that are being made throughout the year.

Within this article we will explore the key information that we can see and see what this means for the industry as a whole.

What can we tell from the latest HMRC R&D Tax Credit statistics?

First off, let me caveat by saying that due to the timing of the release, we can’t see the entire accounting period. However, in 2021’s R&D Tax Credit Statistics, we can see some interesting patterns emerging in the increasingly popular R&D Tax Credit schemes.

It’s great it is to see an increasing number of companies make use of Research and Development (R&D) Tax Credits, to help fund vital projects and push the boundaries in their respective industries.

Over the years, we have seen some incredible projects by our clients, you can find a few of them highlighted in our Case Studies and it’s this constant innovations that will help lift us out of recession.

HMRC R&D Tax Credit Statistics: September 2021 – key points

  1. 85,900 claims made

    This is a 16% increase on the previous year!
  2. 76,225 claims made by SME’s

    16% rise on last year.
  3. 9,675 claims made for RDEC ( Research and Development Expenditure Credit )

    A WHOPPING 19% up on last year.
  4. To date, over £47.5bn has been claimed in tax relief

    This is comprised of over 380,000 claims since the schemes launched in 2000-2001.

What can we read from the latest R&D Tax Credit statistics?

More SME’s are claiming R&D Tax Credits

Since HMRC removed the minimum threshold of R&D expenditure that company’s could claim relief on (al the way back in 2012), we have continued to see the number of SME’s claiming the tax relief rising.

The number of SME scheme claims can be broken down as: 38,050 claims which are purely for a deduction from CT liability and 38,175 claims which include a payable tax credit.

72% of claims fall within the cost band of up to £50k

Overall, the general trends are positive. More businesses are accessing R&D Tax Credits, with the lions share of claims that are being made are for values under £50,000. However, (not shown in the graph) the largest concentration in amount, is in the “over £2m” band.

Amount of R&D tax credits claimed by industry sector, 2019-20 (£ million)

The following image shows a detailed breakdown of the industries claiming R&D Tax Credits, along with the overall value of relief being awarded. As with previous years, Manufacturing, Information & Communications (which encompasses computing and software), along with the Professional, Scientific and Technical sectors are making the majority of claims.

How do the different regions of the UK compare?

As we can see from the following image, there is a big difference in the number of claims in each of the UK’s regions. Now, it’s worth noting that this is the location of the registered office and not necessarily where the R&D takes place.

Amount of R&D tax credits claimed by region of company registered address, 2019-20 (£ million)

Research and Development (R&D) Tax Credits are continuing to provide a valuable cash injection to companies within all industries.

As a company, we’re proud of the part that we play in promoting Research and Development Tax Credits and in helping businesses to access this funding.

With the pressure that Covid-19 has placing on businesses, R&D Tax Credits play a real and tangible part in the recovery process. Business owners are clearly seeing (and reaping) the benefit, now more than ever.

Why not contact us today to discuss your business’ R&D tax relief? It only takes our team around 20 minutes to determine if you are eligible or not.