How many R&D tax credit claims are filed and for how much?

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HM Revenue & Customs (HMRC) has issued its latest statistics on Research and Development Tax Credit Claims made in the year 2017-18.

We summarise the key statistics and insights in the video above but for those who prefer to read – here’s a quick snapshot.

Key HMRC R&D Tax Credit Claim Statistics

  • 48,635 R&D tax credit claims filed (so far...)
  • Average SME R&D tax credit claims were over £54,000
  • Average Research and Development Expenditure Credit (RDEC) claims were over £600,000
  • £4.3 bn of R&D tax relief provided on £31.3 bn of qualifying expenditure

With less than 50,000 claims per this latest report, this would suggest that less than 1% of total companies are claiming (assuming over 5m total number of UK companies).

However, HMRC were far behind in processing R&D tax claims at the ‘cut-off date’ for this latest report – this suggests that there were many more claims in the pipeline waiting to be processed that were not included in these figures.

We should therefore interpret many of these headline figures with a ‘pinch of salt’.

Regional Analysis: Number of claims

London, the South East and the East of England accounted for 46% of all claims and 61% of the total amount claimed.

Despite the increase in average claims for both the SME and RDEC reliefs, it is surprising to see that nearly one third of all claims were for less than £10,000.

Is this due to a lack of understanding of the breadth and scope of the R&D tax relief? Or a lack of experience in understanding exactly what costs are eligible?

Industry sector analysis of R&D claims

Industry sectors ‘Manufacturing’, ‘Professional, Scientific & Technical’ and ‘Information and Communication’ accounted for 68% of total claims and 73% of the total amount claimed.

How does your R&D tax credit claim compare?

We’d love to chat about your experiences either as an ongoing claimant or if this is your first R&D claim