--- title: R&D Tax Credits in the UK – Statistics of an under-exploited funding support mechanism on the UK market. | Winnovart description: At Winnovart, our focus has always been grants-based funding programmes, such as the ones from Innovate UK, EC/ Horizon 2020 or similar. 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[dcc](https://www.winnovart.com/news/author/dcc) May 10, 2018 At Winnovart, our focus has always been **grants-based funding programmes**, such as the ones from Innovate UK, EC/ Horizon 2020 or similar. Although under different terms, **the Reaserch & Develpment (R&D) Tax Credit scheme offered by HMRC** represents a way faster and less competitive alternative for **R&D performing / innovative companies in the UK to receive a “funding-type” support**. Or, for those successfully receiving **innovation grants**, a very good “funding add-on”. Latest statistics published by HMRC for this support scheme show a still under-exploited mechanism, enjoying however a **rapid growth in level of interest from SMEs and large enterprises across industries**, with most of the benefit being claimed by the London and South East region. See below a couple of snapshots with relevant insights from a study published by HMRC (dated September 2017). Please respond to our [**survey**](https://www.surveymonkey.co.uk/r/S9ZB332) on the level of awareness across UK companies.   [![R n D Tax Credits Survey](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Take-Survey-Now.png?width=187&height=40&name=Take-Survey-Now.png)](https://www.surveymonkey.co.uk/r/S9ZB332)   **R&D tax credits are being claimed amongst many industries**, showing how there is room for innovation in each one. The **top three industries** these claims are made in are ‘Manufacturing’ (28%), ‘Professional, Scientific and Technical’ (20%) and ‘Information and Communication’ (26%) sectors, accounting for 32%, 23% and 20% of the total amount claimed respectively. However, **nearly every industry has a presence in trying to claim R&D tax credits**. If your company is researching and looking into any new sorts of untested processes, **your company could qualify for R&D tax credits** as well.   **Figure 1: Industry Sector analysis of R&D tax credit claims, 2015-16** ![Industry Sector analysis of R&D tax credit claims, 2015-16](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/RD-Claim-Industries-1024x640.png?width=647&height=404&name=RD-Claim-Industries-1024x640.png) **R&D Tax Credits are a tax incentive sponsored by the UK government** to provide a tax break to companies that are **fostering research & new breakthroughs in any industry**. While this programme was launched in 2000, recent changes in policy have made this credit more accessible than ever. A requirement previously existed that a company had to spend at least £10,000 to be eligible for the R&D Tax Credits. Since its removal in 2011, **there has been a 350% increase in SMEs first- time applicants**. First-time applications were at an all-time high at 7000 for fiscal year 2015-2016. **Figure 2: Number of first time applications by financial year, 2000-01 to 2015-16** ![Number of first time applications by financial year, 2000-01 to 2015-16](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/First-time-applicants-for-RD-1024x640-1.png?width=960&height=600&name=First-time-applicants-for-RD-1024x640-1.png)**R&D tax credits are being claimed throughout the UK**, however with significantly more applicants coming from London (19%) and the South East (17%) than anywhere else. There are overall significantly more SME claims than large company claims overall, reflecting the fact that **any firm engaging in R&D work of some sort can apply for this tax credit, regardless of size.** **Figure 3: Number of claims by region 2015-2016** ![Number of claims by region 2015-2016](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Regional-Number-of-Claims.png?width=655&height=447&name=Regional-Number-of-Claims.png)   **Most R&D tax credit claims are made from London**, with the South East as a close second. In these regions as well as across the UK, the number of SME claims far outweighs the number of RDEC claims. This is because there are **many small firms conducting R&D activities**, whereas RDEC claims are typical for larger enterprises in particular or for grant-funded enterprises in general. **Figure 4: Types of claims per region 2015-2016** ![Types of claims per region 2015-2016](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Number-of-Applicants-Per-Region-1.png?width=654&height=390&name=Number-of-Applicants-Per-Region-1.png)   The regional spread of **the value of R&D tax credits claimed** follows the structure of filed claims, with London companies having claimed the most aid (29%), seconded by the South East (20%). **Figure 5: Value of R&D tax benefit claimed per region 2015-2016** ![Value of R&D tax benefit claimed per region 2015-2016](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Regional-Amount-Claimed-1.png?width=650&height=378&name=Regional-Amount-Claimed-1.png)   **Almost 90% of all applications are submitted by SME companies**, going of course for the SME-dedicated R&D tax credit scheme. While the large company scheme was officially retired, a few companies are still taking advantage of allowances to use this for the last year. **Figure 6: Types of Scheme Applications by Region for 2015-2016** ![Types of Scheme Applications by Region for 2015-2016](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Type-of-Scheme-Applications-by-Regions.png?width=612&height=432&name=Type-of-Scheme-Applications-by-Regions.png)   When applied for, **the R&D tax credits have a very high success rate.** Basing off the number of claims versus returns for all R&D schemes, **the success rate of receiving some amount of claim is over 99%**, making this a very valuable opportunity that many companies do not take. **Figure 7: Claims for the R&D tax credit by scheme and financial year, 2000-01 to 2015-16** ![Claims for the R&D tax credit by scheme and financial year, 2000-01 to 2015-16](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Number-of-claims-filled-claims-e1525946676516-1024x613-1.png?width=960&height=575&name=Number-of-claims-filled-claims-e1525946676516-1024x613-1.png)   In recent years, the large company scheme was replaced by the RDEC scheme. While slow to catch on at first, there is now **nearly an equal amount of pounds returned under the RDEC and SME schemes.** £1.3 billion was claimed through the SME scheme, £1.4 billion was claimed under RDEC and £70 million under the outdated large company scheme. £95 million was claimed by SMEs and subcontractors through the large company and RDEC schemes. **Figure 8: Total support claimed through R&D tax credits by scheme, 2000-01 to 2015-16 (£ million, accounting period end date basis)** ![Total support claimed through R&D tax credits by scheme, 2000-01 to 2015-16](https://www.winnovart.com/hs-fs/hubfs/Imported_Blog_Media/Pounds-received-1024x640-1.png?width=960&height=600&name=Pounds-received-1024x640-1.png)   Categories: [2018](https://www.winnovart.com/category/2018/), [Innovation](https://www.winnovart.com/category/innovation/), [News](https://www.winnovart.com/category/news/), [Surveys](https://www.winnovart.com/category/surveys/), [UK Innovation Funding](https://www.winnovart.com/category/uk-innovation-funding/), [Uncategorized](https://www.winnovart.com/category/uncategorized/) | Tags: [innovate uk](https://www.winnovart.com/tag/innovate-uk/), [innovation](https://www.winnovart.com/tag/innovation/), [r&d tax benefit](https://www.winnovart.com/tag/rd-tax-benefit/), [r&d tax credits](https://www.winnovart.com/tag/rd-tax-credits/), [r&d tax credits sme scheme](https://www.winnovart.com/tag/rd-tax-credits-sme-scheme/), [r&d tax credits success rate](https://www.winnovart.com/tag/rd-tax-credits-success-rate/), [research and development](https://www.winnovart.com/tag/research-and-development/), [UK smes](https://www.winnovart.com/tag/uk-smes/), [winnovart](https://www.winnovart.com/tag/winnovart/) | [Permalink](https://www.winnovart.com/rd-tax-credits-in-the-uk-statistics-of-an-under-exploited-funding-support-mechanism-on-the-uk-market/) [News](https://www.winnovart.com/news/tag/news), [Uncategorized](https://www.winnovart.com/news/tag/uncategorized), [2018](https://www.winnovart.com/news/tag/2018), [Surveys](https://www.winnovart.com/news/tag/surveys), [UK Innovation Funding](https://www.winnovart.com/news/tag/uk-innovation-funding), [Innovation](https://www.winnovart.com/news/tag/innovation) ![](https://www.winnovart.com/hubfs/Imported_Blog_Media/Take-Survey-Now.png) [![Facebook](https://www.winnovart.com/hubfs/social-media-icons/facebook-icon.png)](https://www.facebook.com/winnovart/) [![Twitter](https://www.winnovart.com/hubfs/social-media-icons/twitter-icon.png)](https://twitter.com/winnovart) [![LinkedIn](https://www.winnovart.com/hubfs/social-media-icons/linkedin-icon.png)](https://www.linkedin.com/company/winnovart) [Winnovart Surveys](https://www.winnovart.com/news/tag/surveys) [Subscribe to Winnovart's Newsletter](https://share.hsforms.com/16rADODCGRgKIED9KhD-HBA2cxgb) Check your funding readiness [Service options – Winnovart](https://www.winnovart.com/funding-highlights/eeanorway-grants/eeanorway-grants-news/eeanorway-bilateral-dimension/) [Contact us! \>\>](https://www.winnovart.com/contacts/) ### ARCHIVE [News & Updates 2021](https://www.winnovart.com/news/archive/2021) [News & Updates 2020](https://www.winnovart.com/news/archive/2020) [News & Updates 2019](https://www.winnovart.com/news/archive/2019) [News & Updates 2018](https://www.winnovart.com/news/archive/2018) [News & Updates 2017](https://www.winnovart.com/news/archive/2017) [News & Updates 2016](https://www.winnovart.com/news/archive/2016) [Go to Winnovart Surveys for fundraising intelligence](https://www.winnovart.com/news/tag/surveys) Copyright © 2010 - 2026 Winnovart [Disclaimer](https://www.winnovart.com/about-us/disclaimer)  |  [Privacy Policy](https://www.winnovart.com/privacy-policy2018/) [Follow us on Facebook](https://www.facebook.com/winnovart/) [Follow us on Twitter](https://twitter.com/winnovart) [Follow us on LinkedIn](https://www.linkedin.com/company/winnovart/)