Average R&D claims on the increase
As we see businesses bounce back from the impact of Covid and access the various Government support schemes, R&D tax credits will play a vital role in helping the UK economy to recover. R&D tax credits can encourage further investment in innovation which can lead to business growth.
The last set of R&D statistics released by HMRC (September 2020) show that 68,295 businesses were funded through R&D tax credits in 2018-2019. 52,160 of these businesses are in the SME R&D scheme. There were first time claims from 15,750 businesses (mostly SME’s) so many businesses do make further claims after their initial one.
At R&D Taxbox, we have recently completed 20 claims with an average claim value of £14,466. We also have 15 claims in progress with an anticipated average claim of £32,122. This demonstrates that an average claim value has increased. Due to the lockdown some businesses were using their time to develop ideas which has resulted in new R&D claims or increased R&D activity in businesses where they had previous R&D activity.
R&D tax credits are not just a one-off claim, 35% of the claims we are currently processing are from businesses who have made claims previously. At R&D Taxbox, we have seen an increase in businesses looking at making R&D tax claims especially for businesses navigating their way out of lockdown. An R&D tax claim can be a vital additional source of funding which can support and develop your business further.
Jon Goodier, Director at R&D Taxbox said “As businesses in the UK begin to get back on their feet after the impact of the pandemic, R&D tax credits will become an important funding boost to many”.
R&D tax credits are a complex process, to ensure you are claiming your full entitlement get in touch here.