The latest statistics indicate that the number of Small and Medium Enterprises (SME’s) making R&D tax credits claims is rising year on year, with a total pay-out value of over £1b in 2014-15.
“A SME may claim a higher rate of relief than a large company. Also, a SME which has no tax bill to reduce may claim a cash payment instead.”
SMEs are also gaining an increasing share of the total amount paid out by Government. In 2014-15 the total tax relief support was £2.45 billion of which £1.1bn was claimed through the SME scheme. In 2013-14 the total amount paid out was £1.75bn of which £800m was claimed through the SME scheme.
The SME R&D scheme is applicable to companies with under 500 employees (that meet certain qualification criteria) while the Large Company R&D scheme and the newly launched RDEC scheme, is for companies with over 500 employees.
Overall value of claims
The graph below shows the total value of the benefits claimed under the SMEs R&D scheme, per year over the last four years.
Quotes and data from: HMRC Research and Development Tax Credits Statistics: September 2016
The image below provides an illustration of just a few of the types of companies and activities that have resulted in successful claims.
Linda Eziquiel, Principal Consultant