HMRC’s 2015-16 Research and Development Tax Credits Statistics released today highlight continued growth in the total number of claims for R&D Tax Credits. This was primarily driven by a rise in the number of SME claims which saw an increase of 22%, having more than doubled since 2011-12.
"We are very pleased to see another positive year for research and development in the UK, celebrating the growth of successful claims for both our clients and the industry! Significant growth in claims from SMEs have contributed to the overall rise of 19%. We look forward to working with our clients to continue making the most of this excellent government scheme and helping innovative companies to grow."Mike Price, Director, The MPA Group.
The total amount of R&D support claimed in 2015-16 has risen to almost £2.9bn – an impressive increase of £470m (20%) from the previous year. R&D expenditure also increased by 4% in 2015-16, reaching a high of £22.9bn. This shows that the scheme is becoming more attractive to companies of all sizes.
The statistics also reported on first time applicants, which has risen considerably since the minimum spend cap (£10,000) was removed in 2012. This could be attributed to a government decision to phase out the Large Company scheme, which has been replaced by the RDEC scheme.
“There has been an increase in the number of claims made by large companies (more than 500 employees) due to a change in legislation. This change allows large companies access to cash, even when there is no corporation tax to pay.”Lisa Baum, Senior Tax Specialist, The MPA Group.
You can find the full HMRC Research and Development Tax Credits Statistics report here