R&D Statistics; what they mean for SME’s
R&D has become a real asset to eligible companies since its introduction in 2001. Over 300,000 claims have been made with a value of around £30bn in total. The figures for this year are not yet fully complete however the figures stated in the article are indicative of a trend. See the link for the full report.
R&D Tax Credits have had a majorly positive influence on technical innovations; especially so since 2012 when the minimum investment cap of £10,000 was removed. This is evident in our region through the sheer number of claims made in London, the South-East and the East of England who accounted for 61% of claims made in the year 2017/2018. 41% of claims made in this year were also made by companies that are under ten years old.
We believe that the impressive influence of SME’s within the statistic for R&D claims is due to the increases in the SME R&D expenditure rate from 125% to 130% in 2015-16.
The number of first-time applicants has risen by 15% following the increase in expenditure rates. This is due to the efforts made to increase the incentive to make a claim and further awareness of the scheme. Despite this, the rise in claims does not necessarily correlate to increased value. For example, 9000 claims made in the year 2017/2018 equated to £20 million in costs, whereas the potential for this band could have reached £41 million (based on a claim worth no more than £5000). Although it is tangible to argue that not all claims would be worth £5000, it is reasonable to say that this difference of £21 million could be reduced with a stronger supporting document and help from a specialist R&D advisor.
Considering the areas in which we are based, and the proportion of claims made in our region, we would like to stress the importance of having a strong technical document to maximise your claiming potential. No claim is too small for us because we believe that Research and Development is essential for progression in whatever sector your business associates with and we pride ourselves on the relationships we have built and continue to build with other small businesses like ourselves.
These figures show that now is the best time to claim R&D because the government are rewarding innovation generously for legitimate claims in order to meet their expenditure targets of 2.7%. If you have been thinking about conducting a Research and Development programme or are currently doing so within your business feel free to seek professional assistance with us. See the following link to take you to our R&D website.
If you have any questions, call us on 01908 219100 or email us at: email@example.com
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