The HMRC releases annual R&D tax credit statistics, making it possible to analyze the progress of R&D throughout the years. It’s time to take a look at the 2020 report. This report shows stats and analysis based on the first portion of the 2020 year.
Their summary findings showed that as of June 30, 2020:
- 59,265 R&D tax credit claims were submitted for the 2018-19 year
- 52,160 claims are in the SME R&D scheme
- £5.3 billion in support has been claimed resulting in £35.5 billion in qualifying expenditures
- 60% of the total amounts claimed were by companies registered in London, the East or the South East of England.
The following 3 sectors made up 66% of the total claims, and 71% of the total amount claimed. Though these sectors are the broadest of the group.
- Professional, Scientific and Technical
- Information and Communication
SMEs and their Claims
We have seen more and more businesses take advantage of the R&D tax credit schemes. There were 15,925 micro claims (below £10k) – a value that could have amazing benefits to the company but hardly impact the totals analyzed in the stats here. Nearly a third of SMEs submit these micro claims, meaning these 15,295 companies collectively claimed 2% of the total amount.
We are also seeing an increase in SMEs claiming through the RDEC tax scheme rather than the SME scheme. At the end of the day, many companies find that the RDEC scheme produces more certainty and benefits to the claimants. With stats showing the shift towards the single claimant process, it calls to mind whether two separate schemes are ultimately worth it.
These stats represent just a portion of the claims made in the 2018-19 tax year as the report was formed prior to the final submission deadline. As such, the numbers and stats could have changed – but we will see those in their next report.
Who We Are:
Swanson Reed is one of the UK’s leading R&D Tax Relief consultancies. We manage all facets of the SR&ED tax credit program, from claim preparation and audit compliance to claim disputes.
If you would like to find out more about how your business could benefit from R&D Tax Credit, contact a Swanson Reed R&D Tax Advisor today.