R&D Tax Credits
What are R&D Tax Credits?
R&D tax credits are a government incentive designed to promote innovation in the UK, whilst simultaneously stimulating the economy. The scheme, run by HMRC, rewards companies who invest time and money into developing new (or improving existing) products, processes or services.
Key HMRC Statistics:
Between the scheme’s launch in 2000/01 and 2018/19, over 300,000 claims have been made with over £33.3bn in tax relief being claimed.
The total number of claims for 2017/18 was 62,095, an increase of 17% from 2016/17.
Over £5.1bn in support was claimed during the 2017/18 period, an increase of 15% from 2016/17.
£36.5bn of Qualifying Expenditure was isolated during the 2017/2018 period, and increase of 8% from 2016/17. 72% of this was claimed through the RDEC scheme, with the remaining 28% via the SME mechanism.