The latest figures from the HMRC for Research and Development Tax Credit for claims made in 2016-17 have been released and it shows that the Yorkshire and the Humber region has seen a massive 54% increase in the number of SME claims. The number of large companies claiming under the RDEC scheme has also increased by 43%.
This is great news for the region as it shows that more companies are taking advantage of this beneficial tax relief scheme. The value of the claims has also risen by 25% since the previous year with a total of £125 million of claims in 2016-17 from 2,625 claimants. This makes the average claim approximately £47,619!
The majority of the region’s claims are coming from West Yorkshire at 44%, South Yorkshire is in second place at 24%, North Yorkshire at 14%, East Riding of Yorkshire at 6%, Kingston upon Hull and York each at 4%. Both North East and North Lincolnshire only total 3% between them.
Whilst some of this will due be to the number of businesses in these regions, there is obviously some disparities between the sub-regions and much greater potential in some areas to receive R&D tax credits.
Who is benefiting?
There are a wide range of businesses that are benefiting from R&D tax credits as they are doing work that meets the HMRC’s R&D criteria but in the Yorkshire and the Humber region just over a third of all claims are from the manufacturing industry.
Other sectors benefiting are:
- Information and communications 18%
- Professional, scientific and technical 15%
- Wholesale and retail trade, repairs 13%
- Admin and support services 5%
- Construction 4%
Who is missing out?
There are still so many businesses that are missing out on this valuable tax relief as they are either not aware of the scheme or don’t believe they are eligible for it. We discussed this in one of our blogs a few weeks ago.
With 419,000 SME’s based in Yorkshire and the Humber, there were only 2,475 claims in 2016-17 representing only 0.5% of SMEs. So, although the increase in the number of claims looks great when you put this into the context of the number of businesses in the region it makes stark reading. With the average SME claim being approximately £38,383 per year it really is a shame that so many businesses are missing out.
It has been estimated that only 20% of eligible companies are claiming R&D tax credits which could mean that there are over 12,000 SMEs eligible in the region with around 10,000 businesses missing out.
There are three industries that Yorkshire & the Humber are well known for that should have a higher number of claimants, these are agriculture, engineering, and food and drink. These are often industries that people don’t think are eligible and get overlooked, but our experience has shown that all industries can be eligible if you understand what HMRC is looking for.
Do you think your business is missing out?
If you think your business is one of those who could be missing out but are not sure whether you are eligible, don’t push it down your to-do list, contact us and we will do a free, no obligation assessment of your business. As technical experts, we understand R&D tax credits as well as how businesses work. We can very quickly ascertain whether a claim is worth making and we often find eligibility where others don’t or greater value than most expect.
If your business is eligible, we can do all the hard work for you so you can concentrate on your business. We don’t charge upfront fees and we are so confident that we can make a successful claim that we only charge you if it is successful and only when the money is received so you won’t even be out of pocket.
There really is nothing to lose in contacting us for a free, no-obligation assessment. To find out more contact TEQ Group today on 01423 815299 or click the button below and we’ll be happy to offer some advice.
Contact TEQ Group