Tag Archives: statistics

UK: 2010-11 stats on R&D published

HMRC have published the latest set of annual statistics on R&D tax relief claims (external PDF), indicating a rise of almost 9% overall in the number of claims (9.6% rise for SME claims, 5.5% for large company relief claims, and 6.6% rise in SME subcontractor claims). The value of relief claimed rose by 7.7% to £1.1bn (£340m in SME claims, £750m in large company relief claims).

There’s some support to the view that the credits may increase R&D expenditure – R&D spend by SME claimants increased 11.3%, and the R&D spend of large company claimants was 8.3%. The SME spend is now consistently increasing year on year, after a rather flat first few years.  The effect of the economy also has to be taken into account; the increase in spend seems unlikely to be solely due to the credits, particularly in the large company where the relief is worth barely 7% of R&D spend. For reference, ‘background noise’ threshold on incentives is generally around 6% – where the benefit is less than that, it’s often too much hassle to claim the incentive.  Once we reach the 22% tax rate, the benefit of the large company relief will be 6.6% of expenditure.

This year, the stats show the regional and industry analysis for the first time. The regional analysis is largely useless, as it’s based on the registered office of the company and so has a disproportionate number in London and the South East. Tax returns don’t show where money is actually spent. The industry analysis shows claims are made overwhelmingly in the business services and manufacturing sector – no particular surprise, particularly as ‘business services’ is a catch-all covering everything from generic R&D to property.

Finally, it’s somehow comforting to see that vaccine research relief claims continue to trundle along at 10 per year, as they always have done. It’ll be a shock if and when that number ever changes (which it might: the vaccine research relief can no longer be claimed by SMEs, so it’s not impossible that the stats in a couple of years time will show a different figure).

OT: UK Tax Tribunal statistics (updated)

Poking around in Hansard can produce some interesting notes at times.  On 4th May 2011, Chuka Umunna (MP for Streatham, Labour) asked the Secretary of State for some information on First Tier Tax Tribunal statistics.  Jonathan Djanogly (MP for Huntingdon, Cons.; Parliamentary Under Secretary of State (HM Courts Service and Legal Aid)) came up with the following for tax appeals received – figures updated with information from the Tribunals Statistics document for the year ended 31 March 2011:

  • 2004-5: 4,110
  • 2005-6: 3,190
  • 2006-7: 3,800
  • 2007-8: 4,160
  • 2008-9: 5,620
  • 2009-10: 10,400
  • 2010-11: 8,900*

UK: R&D tax relief claims creep up

HMRC  has published the latest set of details on the number and value of R&D tax relief and R&D tax credit claims, covering claims in 2008-9.  There is an increase in the number and value of claims, but it is surprisingly small considering that 2008-9 was the catch-up deadline to get in claims for relief on expenditure over the previous six years (the relief now has to be claimed in the company tax return or amended return).

The total number of companies claiming the relief was 8,.350 in 2008-9 – that seems a very low number, and it may make the scheme vulnerable to change/removal in the upcoming consultation on how IP is taxed in the UK.

Continue reading