Data reveals region’s R&D hotspots
New data published by HMRC has revealed the hotspots for R&D tax relief claims across the Yorkshire and Humber region.
West Yorkshire-based businesses topped the league for the number of claims for R&D tax credits in 2016-17 at 1,175 claims, followed by South Yorkshire on 625 and North Yorkshire on 360.
In total, businesses across the region submitted 2,625 R&D claims in 2016-17, claiming some £125m in tax relief. Compared to the data reported for the previous year published in February 2018, this represents a 50% rise in the number of claims and a 25% rise in the amounts claimed in R&D tax credits.
The largest number of claims across the region came from manufacturing companies (925) who collectively claimed £45m, followed by information and communications firms (465) who claimed £25m, followed by professional, scientific and technical businesses (400) who claimed £25m.
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).
Richard Wilson at RSM in Leeds said: “Compared to the data released this time last year, the latest figures show another healthy rise in the numbers of applications for R&D tax credits. It’s pleasing to see that Yorkshire-based businesses have seen a higher overall level of support for their 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 Yorkshire and Humber that are undertaking R&D work but are missing out on the R&D tax credit payments to which they are entitled.”
