UK companies are able to claim tax relief for their R&D activity, the scheme was introduced by the Government in 2000 as an incentive to encourage businesses to innovate and is so doing improve their products, services and processes.
Businesses can claim back expenditure spent on projects where they can demonstrate how they are breaking into new ground and have overcome technical or scientific challenges.
Businesses from diverse industries have claimed. Here are some examples of sectors and average claim size as quoted by the HMRC in Sept 2019 for the year 2017-18:
- Agricultural £42,857
- Professional, Scientific & Technical £64,236
- Construction £46,392
- Accommodation & Food £22,222
- Manufacturing £43,419
- Information & Communications Technologies £51,075