North East businesses claim £150m for innovation
North East businesses claimed £150 million in research and development (R&D) tax credits for the 19/20 financial year, according to HMRC’s latest R&D tax relief report, with the average claim being worth £54,000.
£150 million was received by North East registered businesses, with a total of 2,760 claims, a number that will continue to grow as 19/20 years remain open for claims until March 2022.
The report shows a 15% increase in the total amount claimed by North East businesses, with a 15% increase in the number of claims, from tax year 18/19 to 19/20. Since 14/15, there has been a 139% increase in the number of claims.
According to the report, the sectors where the highest number of R&D claims across the UK were made are Information and Communication (22%), Manufacturing (22%) and Professional, Scientific and Technical (19%) sectors, accounting for 20%, 25% and 24% of the total amount claimed, respectively.
Leslie Maloney, tax specialist at R&D tax specialists Access2Funding, said: “The uplift in the number of R&D tax relief claims in the North East represents an increasing awareness of HMRC’s tax relief scheme and increasing innovation within the region, which is wonderful to see.
“The key takeaways from this year’s R&D tax credit report are the two growth areas in Professional, Scientific and Technical and Information and Communication, both of which saw significant expansion in the number of claims made in 2019-20.
“I personally believe this report shows opportunity for real growth for innovative businesses in the North East, particularly in those high growth sectors and a shift towards the new economy. The more traditional sectors like Manufacturing and Construction have been claiming R&D for many years and we expect this to continue but for Professional, Scientific and Technical and Information and Communication to be the main drivers of growth in helping the country to recover economically. This will be reflected in 2022’s report.”
The average claim value across the UK is sitting at approximately £57,000. There has however been an increase in the number of claims made from last year, from 74,200 to 85,900 and this figure will certainly increase.
R&D tax credits are an HMRC incentive to encourage UK businesses to continue to grow by innovating. The incentive being a reduction in corporation tax or cash payment.
Other News
embecta and PolyPhotonix sign Partnership Agreement for Noctura 400 Sleep Mask
Kromek secures orders totalling over $1m in medical imaging
Clinical Services Advisor
Durham welcomes Annual North East Space Conference
Filtronic wins £2m satellite communications contract
Kromek Awarded Funding for £2.5m Breast Cancer Screening Solution Developments
Follow NETPark On Social Media
Keep up to date with the latest NETPark news and events.
The North East Technology Park provides a dynamic and supportive environment to accelerate the growth of ambitious, innovative, high tech companies into global markets. NETPark encourages collaborative multidisciplinary links, driving innovation, enterprise and economic prosperity.
We provide companies with access to a focused and international community where talent flourishes, ideas are generated and businesses have the support and resources to compete with the best in the world.
NETPark North East Technology Park
NETPark, North East Technology Park,
Sedgefield, County Durham TS21 3FD
Call Us: (+44) 01740 625250
Email: enquiries@northeasttechnologypark.com
Web: northeasttechnologypark.com
The proximity to the universities and the infrastructure are very important factors. Ultimately having a presence in Europe is very valuable to us and we intend to stay at NETPark for many years to come.
It fits perfectly for us that we’re surrounded by like-minded companies at NETPark. There are a number of highly skilled people in the area who can help us grow our business. The facilities and services offered by NETPark are first class, they make office life simple and engaging.
CPI has developed a specialist offering to support SMEs looking to develop their printable electronics applications and our partnership with Business Durham has been instrumental in attracting several SMEs to locate here in the region.
The quality of the facilities at NETPark and the attitude of staff is first class. It has a really dynamic, innovative atmosphere.
Access to quality facilities was one of the main drivers for deciding to locate the business at the NETPark. We have been able to use this as a launch pad to link into support from CPI and world-class expertise from Durham University.
We initially came because of the printable electronics centre but access to a highly skilled semi conductor workforce in the North East has been a key factor in us staying and growing here, as well as the value for money office space and the access to funding.