R&D tax relief claims in Yorkshire on the rise

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The latest Government statistics published today show that the number of claims for Research and Development (R&D) tax relief by businesses in Yorkshire has risen by 23% since last year.

First introduced in 2000, R&D tax credits were designed as a tax relief to encourage greater R&D spending and innovation. Since then, almost 120,000 claims have been made, with more than £11.4bn claimed in tax relief.

Recognising their popularity and in a bid to further boost innovation, last year the Chancellor announced an increase in R&D tax credits to 230 per cent. This means that for each £100 of qualifying costs, the corporation tax paid by SMEs could be reduced by up to £46.

Tim Parr, Baker Tilly Tax Partner in Yorkshire, said:

This increase in figures shows that real confidence is beginning to return to the region as well as the UK economy. We’ve seen a significant rise in claims from businesses in Yorkshire and we know the Northern Power House is on the top of the Government’s agenda, and this may be helping to build confidence in businesses in the region.

Using the tax system to incentivise and innovate business has been a smart move by the Government, and one that is clearly going to give a much-welcome boost to the whole of the UK economy.

More about this story

  • A full breakdown of the statistics is available here.
  • Baker Tilly is the trading name of a number of separate legal entities which has  revenues of almost £300m a year with over 3,400 partners and staff operating from 32 locations offices throughout the UK, and is the 7th largest UK firm of chartered accountants, tax and business advisers to entrepreneurial and growing businesses.
  • Key professional services: audit, accountancy, personal and corporate taxation, VAT, management consultancy, corporate finance, IT advisory, restructuring and recovery and forensic services.
  • Sector expertise: charities and education, agriculture, automotive, media, manufacturing, pensions, professional practices, public sector, property, social housing, retail and leisure.
  • Baker Tilly is a member of RSM International, the seventh largest network of independent audit, tax and advisory firms, encompassing over 100 countries, 700 offices and 35,400 people internationally. The network’s total fee income is US$4.5billion.