East Midlands businesses claim £355m for innovation

– HMRC’s latest R&D report shows average regional claim value of £64,000

– 144% increase in number of claims since 14/15

– 5,510 claims made totalling £355m.

East Midlands businesses claimed £355 million in research and development (R&D) tax credits for the 19/20 financial year, according to HMRC’s latest R&D tax relief report, with the average claim being worth £64,000.

There was a total of 5,510 claims, a number that will continue to grow as 19/20 years remain open for claims until March 2022.

The report shows a 22% increase in the total amount claimed by East Midlands businesses, with a 13% increase in the number of claims, from tax year 18/19 to 19/20. Since 14/15, there has been a 144% increase in the number of claims.

According to the report, the sectors where the highest number of R&D claims across the UK were made are Information and Communication (22%), Manufacturing (22%) and Professional, Scientific and Technical (19%) sectors, accounting for 20%, 25% and 24% of the total amount claimed, respectively.

Leslie Maloney

The average claim value across the UK is sitting at approximately £57,000. There has however been an increase in the number of claims made from last year, from 74,200 to 85,900 and this figure will certainly increase.

R&D tax credits are an HMRC incentive to encourage UK businesses to continue to grow by innovating. The incentive being a reduction in corporation tax or a cash payment.