Partner Article

Yorkshire and Humber R&D relief rises by 30% coming in at £30 million

Research and Development tax relief by SMEs in the Yorkshire and Humber region rose by more than 30% in 2012-13 versus the previous year according to the latest Government figures.

In total, there were 905 claims for R&D tax credits by SMEs in the region worth £30 million in relief in 2012-13. This was up from 695 claims in 2011-12 worth £19 million in tax relief.

Large companies in the region made 135 claims for R&D tax credits, up 8% on 2011-12, although the value of relief claimed by large companies reduced to £15 million from £19 million last year.

Nationally, the total number of claims (combining the SME and large companies R&D schemes) rose to 15,930, an increase of 26% compared to 2011-12, with the total amount of support claimed reaching £1.4 billion, an increase of £150 million from the previous year.

R&D tax credits, which were first introduced in 2000, are a tax relief designed to encourage greater R&D spending and innovation.

Since the introduction of the scheme, the available tax breaks have become more generous and HMRC has broadened the way it interprets and applies the rules in order to provide greater stimulus for innovation in the economy.

Commenting on the figures, Neil Sevitt, head of SME Services at Baker Tilly who is based in Leeds said: “There has been a huge rise in the numbers of SMEs in Yorkshire claiming this type of tax relief which reflects the national trend.

“This is due in part to changes in the rules regarding SME expenditure which came into force from 1 April 2012, but it is also a sign of a returning confidence in the region’s economy and an increased awareness of this type of tax relief among SMEs.

“Many businesses across Yorkshire and the Humber are realising that R&D tax relief isn’t just for the manufacturing or tech sectors and can apply to many other sectors that are developing innovative products or processes.”

This was posted in Bdaily's Members' News section by Clare Burnett .