Manufacturing Industry Claims £1.5bn in R&D Tax Credit - Industry Today - Leader in Manufacturing & Industry News
 

September 30, 2022 Manufacturing Industry Claims £1.5bn in R&D Tax Credit

HMRC today released their R&D tax credits statistics for the year 20/21 – here are the key points for the manufacturing industry.

  • Average manufacturing R&D claim worth £80,000
  • Manufacturing claims made up 21% of all claims
  • Year-on-year increase in manufacturing claims of 3%.

The manufacturing industry made the second highest number of research and development (R&D) tax credits claims for the year 20/21, according to HMRC’s R&D tax credit statistics, analysed by tax relief specialist Access2Funding, a Ryan company.

A total of 18,795 claims were submitted, representing a 3% increase from the previous year, and totalling £1.5 billion. This is a number that will continue to grow as the 20/21 claims window remains open for claims until March 2023.

Manufacturing businesses accounted for 21% of the total number of UK claims, with the average manufacturing R&D claim worth £80,000, compared to £89,000 in 19/20. For SMEs, the average claim dropped from £52,000 to £50,000.

With regards to other sectors in the report, taking top spot with number of claims was the Information and Communications sector, at 22%, closely followed by Professional, Scientific and Technical at 19%.

A total of 89,300 claims throughout all industries were made overall up until 31 March 2021, with 78,825 claims from SMEs.

nigel holmes
Nigel Holmes

Nigel Holmes, Director of Tax at Ryan, said: “It’s refreshing to see how the manufacturing industry was able to maintain momentum during the Covid-19 pandemic, with more claims made, however it is not surprising to see a reduction in the total value of claims and a 15% decrease in R&D expenditure as businesses were unable to carry out normal levels of R&D activity.

“Manufacturing SMEs have particularly weathered the storm, with 3% more SMEs claiming in 20/21 than 19/20 – reflecting the resilience of the industry and its ability to adapt and overcome.

“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 manufacturers have shown they are in a great position to continue to go up against anything that is thrown at them and ensure that R&D is at the heart of a successful economy.”

The average claim value across the UK is sitting at approximately £74,000, or £54,000 for SMEs. There has been a 7% increase in the provisional estimated amount of claims made compared to last year, from 85,900 to 89,300, driven by a 7% rise in the number of R&D claims made by SMEs.

Tax relief specialist Access2Funding is supports businesses across the UK with accessing innovation tax relief and in 2021 helped return a total of £17 million to businesses.

For more information, please contact PR & Content Executive Charlotte Hudson at c.hudson@access2funding.

About Access2Funding 
Access2Funding, a Ryan company, is an award-winning team of tax relief specialists and experienced business growth experts, dedicated to supporting UK businesses with innovation funding support and HMRC’s various tax relief schemes.

In 2022, Access2Funding was acquired by global tax services and software provider Ryan, the largest firm in the world dedicated exclusively to business taxes.

An ACCA-approved employer, the business also holds ‘silver’ Investors in People status and the prestigious Navajo Chartermark for good practice and commitment to tackling LGBT+ inequality

 

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