{"id":19719,"date":"2022-10-31T10:59:49","date_gmt":"2022-10-31T10:59:49","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/partners-blog\/?p=19719"},"modified":"2022-10-31T10:59:49","modified_gmt":"2022-10-31T10:59:49","slug":"amount-of-rd-funding-falls-for-first-time-but-claims-still-rise","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/partners-blog\/amount-of-rd-funding-falls-for-first-time-but-claims-still-rise\/","title":{"rendered":"Amount of R&D funding falls for first time, but claims still rise"},"content":{"rendered":"

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The amount of Research & Development (R&D) tax relief support claimed by UK businesses has fallen, according to figures from HMRC.<\/p>\n

<\/p>\n

But although the amount of funding has dropped, the number of firms making claims has risen. For the 2020\/21 tax year, \u00a36.6 billion was claimed by UK firms, which is a four per cent decrease from the previous year.<\/p>\n

First decrease in 20 years<\/strong><\/p>\n

The statistics from HMRC show this is the first time there has been a decrease since the scheme was introduced 20 years ago.\u00a0 Growth had risen by an average of 17 per cent in the tax years between 2014\/15 and 2019\/20.<\/p>\n

However, figures report an estimated total of 89,300 claims made during the 2020\/21 tax year, a seven per cent rise from the previous year.<\/p>\n

Overall was a 10 per cent decrease in the average value of claims during the 2020\/21 tax year.<\/p>\n

R&D Tax Credits allow up to 33 per cent of\u00a0eligible R&D costs\u00a0to be claimed back from HMRC.<\/p>\n

Such costs include staff wages, employers\u2019 pension and NI contributions, materials, gas and electricity costs.<\/p>\n

How can it work for SMEs?<\/strong><\/p>\n

You are classed as a small or medium-sized enterprise (SME) for the purposes of R&D tax incentives if you employ less than 500 employees and have either an annual turnover under \u20ac100 million or a balance sheet under \u20ac86 million.<\/p>\n

HMRC says R&D\u00a0tax relief allows companies to:<\/p>\n