How Much Did SMEs Claim in Research and Development Tax Credits Last Year?
Date: 24th July 2012
Research and Development (R and D) Tax Claims to April 2010
In the tax year to April 2010, 7,410 SMEs claimed an average of about £43,000 each from the UK government in R & D Tax Credits. As more and more UK companies use science and technology to gain competitive advantage; as more and more companies become aware of the massive level of financial aid provided by the UK government, and more and more consultancies and accountancy firms are providing help in order for SMEs to claim the number of SMEs, claiming is likely to continue to grow.
Will the pace of technological change spur SMEs to claim more R&D tax credits?
It is fair to say that larger companies have been better at recognising claim opportunities, and this is shown as the largest percentage of money (over 60%) invested by the UK government in R & D Tax Credits has gone to non SMEs, despite the vastly greater number of SMEs in the UK and the fact that SMEs benefit at a level which is about three times that enjoyed by larger companies.
Given that the use of science or technology to:
- improve products
- reduce costs
- improve processes
- create new materials and new devices
- deliver new services
pr provide more intangible benefits, such as improving environmental performance, is increasing, it is safe to say that the claiming of R & D Tax Credits by SMEs will increase at a fast pace.