A recent HMRC report indicates that Northern Irish businesses and tech firms were granted £75m in R&D Tax Credits in the 2017-2018 tax year.
R&D Tax Credit expert Amplifi has highlighted that Northern Ireland claimed £75m in R&D Tax Credits in the 2017-2018 tax year. The R&D Tax Credit system was introduced by HMRC to provide an incentive for UK companies to invest heavily in innovation. Businesses across the UK can use the system to claim back part of the costs associated with developing new products and services.
The rapid rise of the tech sector in Northern Ireland has benefitted heavily from the scheme, with most tech firms constantly investing in R&D to turn fresh new ideas into marketable products. The startup and small business scene in particular has benefitted, with over 86% of all R&D claims being from SMEs.
A total of £4.3bn in relief has been claimed across the UK for this period so far, with most of it being concentrated in firms headquartered in or near London. Northern Ireland saw 1,310 individual claims from small and large companies, with £75m in relief claimed on £505m in R&D expenditure throughout the region.
The bulk of claims across the UK came from the Manufacturing, Professional Scientific & Technical, and Information & Communication sectors. FinTech also accounted for a large portion of the remaining claims, along with administrative services and retail innovation.
Source: HMRC report, via Amplifi
