According to HMRC R&D Tax Credit statistics, roughly 90,000 companies filed R&D Tax Credit claims in 2022. Of this amount, about 78% were small and medium-sized enterprises (SMEs).

Even though HMRC are carrying out an increased number of compliance checks. We believe new, or first claimants will comprise about 10-15% of future R&D tax credit claims. In addition, each year we expect 10-15% of companies that filed an R&D Tax Credit claim in the previous year will not file an R&D Tax Credit claim in the subsequent year.

So, based on these statistics, it remains important for advisors to ensure they are identifying all clients who are eligible to make an R&D Tax Credit claim. Further, it might be prudent to ensure those clients who made a previous R&D claim but are not planning to do so again, are making the right decision not to claim.

Increase in compliance checks

But the increase in HMRC compliance checks will likely enhance the integrity and robustness of the R&D Tax Credit scheme. This ensures that only genuine claims are approved. This could lead to a more rigorous assessment process. Which potentially would deter some companies from filing claims if they are unsure of their eligibility or lack the necessary documentation to support their R&D activities. However, for businesses that do meet the criteria, these checks serve as a safeguard. Which maintains the scheme’s credibility and ensuring that funds are allocated to truly innovative endeavours.

How can RDP help with your R&D Tax Credit claim?

In each instance, RDP can assist in assessing if the company is eligible to make an R&D Tax Credit claim at no charge. This typically occurs over a short 30-minute call with the company.

So. if you have any clients interested in our free assessment, or want to know more about how to make a R&D Tax Credit claim. Please don’t hesitate to contact Jenni at [email protected]

RDP are offering a free webinar to you and your colleagues. This is on the significant changes in R&D Tax Credits over the past 2 years. If you are interested please get in touch.