According to the latest figures published by the Office for National Statistics, Britain’s spending on research and development (R&D) as a proportion of GDP stands at 1.67 per cent.
Despite R&D spending reaching a record £33.1 billion in 2016, an increase of 4.3 per cent, above the long-term annual average increase of 4.1 per cent since 1990, Britain is still lagging behind the European Union, where the average spend was 2.03 per cent.
As a percentage of GDP, the UK ranked 11th of all EU countries, unchanged from 2015.
Compounded by concerns around Brexit, the Prime Minister Theresa May last year pledged to boost productivity with additional investments in technology, infrastructure and training as part of the government’s Industrial Strategy. With this came the announcement of an increase in spending on R&D to 2.4 per cent of GDP by 2027, which could escalate public and private R&D investment by as much as £80 billion over the next 10 years.
This in turn should help to boost economic growth which is currently constrained by poor productivity and hampered by Brexit.
At Beavis Morgan, we have made substantial successful claims for business across a range of sectors and we are working with SMEs to reward innovation, even helping owner managers claim Patent Box.
There are a number of ways in which companies can maximise the value of HMRC’s R&D tax credit scheme. Items that can be included in a claim include salary costs, subcontracting expenses, external testing, software licensing, consumable materials and some utility costs, although “extras” can be found in the form of claims in areas such as third-party IP.
Speak to us today to find out more about claiming money back for investing in innovation through R&D tax credits for SMEs – but remember the two year time limit!