The CBI ran a survey to assess the impact of the government’s R&D Tax Credit scheme. This survey had great news for innovative companies as it found and highlighted the positive impact of the R&D tax credit on business R&D investment in the UK. The survey discovered that the value of the credit to companies is now a recognised factor in R&D investment decisions.
Amongst the key findings were:
- average savings on R&D costs delivered by the tax credit have now reached eight per cent (with SMEs saving 10.5 per cent, medium-large companies 8.5 per cent and large companies 6.0 per cent)
- a significant sample of companies surveyed (37 per cent) actually increased R&D as a result of the credit
- and more good news, 75% of companies surveyed said the credit had helped, directly or indirectly, to maintain their R&D in the UK.
This survey found that the HMRC’s role in providing advice and handling claims had notably improved. The credit has become an important factor when deciding where to base the company’s R&D activity. This improves the attractiveness of the UK as a destination for high value investment and jobs.