Figures published today (27 September) by HMRC reveal that in the last year the Exchequer paid out £3.5 billion in R&D to support UK companies.
The upturn in companies claiming R&D cash supports our own experience with clients, who are increasingly keen to explore whether they might be able to claim R&D cash.
The increase in the number of businesses claiming R&D tax credits is good news for UK innovation, and indicates more organisations are investing in technologies to help improve business performance.
Given the majority of those companies using R&D tax credits are small and medium-sized enterprises (SMEs), the uptake in the relief’s use could encourage many innovative businesses to grow and expand and reach their full potential.
Additionally, despite the ongoing uncertainty surrounding Brexit continuing to impact on business planning, the figures show that more organisations are willing to invest and focus on what they do well.
In the long-term, this should help the UK economy to thrive and could help create a flourishing business environment which will attract further outside investment.
However, while the figures are encouraging, the fact is that many more innovative businesses in the UK could be making more of the relief.
Whether the generally low uptake relates to a lack of understanding of the relief, or there are concerns over whether the business activities qualify, specialist advice can help to determine those eligible businesses and projects which stand to gain significant repayments for investment.