Latest Research & Development Tax Relief statistics released by HMRC for tax year 2013/14
- Since the R&D tax credit schemes were launched in 2000-01 up until 2013-14, almost 120,000 claims had been made and more than Â£11.4 billion in tax relief claimed.
- By the end of 2013-14, more than 33,800 different companies had made claims under the SME (Small and Medium Enterprise) scheme since it began in 2000-01, and over 7,800 under the large company scheme, which launched in 2002-03.
- The total number of claims rose to 20,100 for the accounting period ending in 2013-14. The increase was primarily driven by an increase in the number of SME claims (up 23%). This is distinct from the number of returns (18,720) as a return can include more than one claim, e.g. where there is a claim for both the large company scheme and Vaccine Research Relief.
- The total amount of R&D support claimed rose to Â£1.75bn â€“ an increase of Â£380m from the previous year. The cost of support for the SME scheme rose by Â£200m from Â£600m to Â£800m. The cost of the large company scheme was lower at Â£380m, reflecting the introduction of the new RDEC scheme; the cost of the RDEC scheme was Â£580m.
- The total R&D expenditure against which claims were made amounted to Â£14.3bn in 2013-14, an increase of 7% from the previous year.
- R&D claims and the amount claimed are mainly concentrated among companies with a registered office in London, the South East or the East of England (46% of all claims and 64% of the total amount claimed). However, the regional split is based on the registered office location, which may not be where all of the R&D activity took place.
The â€˜Manufacturingâ€™, â€˜Professional, Scientific and Technicalâ€™, and â€˜Information and Communicationâ€™ sectors continued to have the greatest volume of claims, making up a total of 76% of claims and 81% of the total amount claimed for 2013-14). However, these figures should be treated with caution as the industry classifications used are company classifications and may not reflect the industry in which the R&D activity itself is carried out.