The number of claims for research and development tax relief by Yorkshire busineses has risen by 23 per cent over the last year, according to latest Government statistics.
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 Powerhouse 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.”