In a new report from the HMRC, it seems Welsh firms are underclaiming R&D tax credits compared to the country’s share of UK companies. Claims for the tax year 19/20 totalled 85,900 while the 2,940 claims from Wales were just 3.4% of the total. Welsh firms make up approximately 5% of the UK total business population, suggesting that the country is underclaiming by at least 1.6%. These figures will continue to grow as the claim window for the year remains open until March 2022. 

Northern Ireland, whose population is nearly half that of Wales, received £135m in R&D tax credits, against the £170m for Wales. It would appear that there is scope for Welsh businesses to pursue additional support for the innovation they create.

The Welsh government has been working to increase innovation in the region. The UK government is also trying to increase innovation, most notably with the project which was granted £22 million under its “Strength in Places” fund in South East Wales.

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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.