New data shows R&D hotspots in the East of England
10/05/2019 - RSM
New data published by HMRC has revealed the hotspots for R&D tax relief claims across the East of England.
Hertfordshire-based businesses topped the league for the number of claims for R&D tax credits in 2016-17 at 875 claims, followed by Cambridgeshire on 855 and Essex on 790.
In total, businesses across the East of England submitted 3,870 R&D claims in 2016-17, claiming some £395m in tax relief. Compared to the data reported for the previous year published in February 2018, this represents a 47 per cent rise in the number of claims and a 7 per cent rise in the amounts claimed in R&D tax credits.
The largest number of claims across the region came from manufacturing companies (1,085) who collectively claimed £115m, followed by information and communications firms (880) who claimed £50m, followed by professional, scientific and technical businesses (775) who claimed £150m.
R&D tax credits are a tax relief designed to encourage greater R&D spending, leading in turn to greater investment in innovation. They work by either reducing a company’s liability to corporation tax or providing a cash injection for companies without a tax liability (i.e. loss-making businesses).
Commenting on the new numbers, Sheetal Sanghvi, Regional Head of R&D Tax Credits at RSM said: ‘Compared to the data released this time last year, the latest figures show a healthy rise in the numbers of applications for R&D tax credits, and higher payouts for East of England-based businesses involved in R&D activity.
‘While this is very encouraging, there are some sectors – construction in particular – where the numbers of claims are negligible, despite the likelihood that many are involved in R&D activity.
‘The fact is there could be many more businesses across the East of England that are undertaking R&D work but are missing out on the R&D tax credit payments to which they are entitled.’
All articles on this news site are submitted by registered contributors of SuffolkWire. Find out how to subscribe and submit your stories here »