HMRC has recently published its latest set of statistics for R&D Tax Credit Claims – including full year 2016-17 data and partial 2017-18 data. Here is MSC R&D’s take on them.
Number of SMEs claiming continue to rise – Good News
45,045 SMEs claimed in 2016-17, this being a 22% increase over the previous year.
42,075 SMEs have claimed in 2017-18 to date and the final number should comfortably exceed the 2016-17 figure.
The number of first-time applications continues to grow, and is projected to exceed 2016-17 totals of c12,000
Claim values level off – Not So Good News
However, whilst the partial data for 2017-18 shows an average SME claim value of £53,713 – an increase over 2016-17 (£49,173) – historically this figure tends to decrease once all data is received and looks set to end up similar to 2016-17.
One reason behind this lack of growth is undoubtably the continuing high number of small value claims which have occurred since the removal of the requirement for a minimum R&D expenditure of £10,000 from April 2012 onwards.
18% of SME claims were less than £5,000, and 77% were less than £50,000.
Another reason could be that many SMEs are not getting the best advice when submitting their claim. MSC R&D’s client base consists of both hundreds of first-time applicants and hundreds of companies who realised their previous ‘solution’ was not fit-for-purpose.
It is no coincidence that MSC R&D’s investment in both technical expertise and understanding the R&D Tax Credit rule book (we employ the person who wrote it!), underpinned by our quality, fast-track processes (The MSC R&D Team Way®), results in more and more companies coming to us to deliver the optimum R&D Tax Credit claim service.
Contact us on 0114 230 8401 to discuss your requirements.
Download our 'At a Glance' Guide to the key SME R&D Tax Credit Claim Statistics