Southeastern companies claimed the second highest number of research and development (R&D) tax credits than any other region for fiscal year 19/20, according to HMRC’s R&D tax relief report, which was released on September 30, 2021.
London won first place.
Â£ 1.3 billion has been received by registered businesses in the South East, with a total of 12,740 complaints, a number that will continue to grow as 19/20 year olds remain open to complaints until March 2022. The average claim amount was Â£ 104,000.
The report shows a 20% increase in the total amount claimed by businesses in the South East, with a 17% increase in the number of complaints from tax year 18/19 to 19/20.
According to the report, the sectors where the highest number of requests for R&D in the UK have been made are the information and communication sectors (22%), manufacturing (22%) and professional sectors, scientific and technical (19%), representing 20%, 25% and 24% of the total amount claimed, respectively.
Leslie Maloney, Tax Specialist at Access2Funding, R&D Tax Specialist, said: âThe increase in the number of requests for R&D tax relief in the South East represents a growing awareness of the tax relief regime in the South East. HMRC and growing innovation in the region, which is wonderful to see.
âThe main takeaways from this year’s R&D Tax Credit report are the two areas of growth in professional, scientific and technical, and information and communications fields, both of which have experienced a significant increase in the number of complaints filed in 2019-2020.
âPersonally, I think this report shows a real growth opportunity for innovative companies in the South East, especially in these high growth sectors and a transition to the new economy. More traditional sectors like manufacturing and construction have called for R&D for many years and we expect this to continue, but professionals, scientists and technicians and information and communication will be the main engines of growth. to help the country recover economically. This will be reflected in the 2022 report.
The UK average claim value is around Â£ 57,000. However, there has been an increase in the number of complaints compared to last year, from 74,200 to 85,900 and that number is sure to increase.
The R&D tax credits are an incentive from HMRC to encourage UK businesses to continue to grow by innovating. The incentive being a reduction in corporate tax or a cash payment.