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

By Sam Pither

3 October 2022

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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

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.”

By Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset.

A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise.

Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.