South East R&D tax credit claims reach £1.2bn

Businesses in the South East claimed the highest number of research and development tax credits of any region outside London for the 20/21 financial year.

This is according to analysis of HMRC’s latest R&D tax credit statistics carried out by tax relief specialist Access2Funding, a subsidiary of tax software specialist Ryan.

Across the 20/21 financial year, £1.2 billion was given to South East registered businesses across 13,000 claims. The average claim in the South East was worth £93,000, for SMEs it was £60,000.

According to Access2Funding’s analysis, the volume of claims rose by 7 per cent on 19/10 while the amount claimed decreased by 2 per cent. The highest number of R&D claims were made by businesses in the Information and Communication (22 per cent), Manufacturing (21 per cent) and Professional, Scientific and Technical (19 per cent) sectors

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Nigel Holmes, Director of Tax at Ryan, said: “It’s refreshing to see how the South East has maintained steady momentum during the Covid-19 pandemic, with more claims made, but it’s not surprising to see a small decrease in the total value of claims and R&D expenditure, as a result of staff furlough and the inability for businesses to undertake their normal level of R&D activity.

“SMEs in the region have particularly weathered the storm, with 7% more SMEs claiming in 20/21 than 19/20 – reflecting the resilience of the region’s businesses and their ability to adapt and overcome by significantly accelerating the pace at which they undergo innovation-led growth.

“As with the UK’s current financial pressures, R&D tax relief can help offset other rising costs and help stabilise future business growth, and the South East has shown it’s in a great position to continue to go up against anything that is thrown at it and ensure that R&D is at the heart of a successful economy.”

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