A recent study by the Office for National Statistics (ONS) has shown an increase in spending for UK businesses on Research and Development (R&D) in 2018. Expenditure has increased from £23.7 billion in 2017 to £25 billion in 2018.
Aviation and telecoms sectors experienced the fastest growth in spending in R&D. With the latter spending 25.4% more than in 2017.
Ben Eley, partner at Birmimgham based Accountancy Barnett Ravenscroft, commented “With political and economic uncertainty, many UK firms are looking for innovation and ways to differentiate to remain strong in the current climate. It’s a step in the right direction as it’s vital that UK businesses stay competitive.”
Tax relief on R&D means that machinery and equipment received the biggest benefits of government funding, the study revealed.
Eley continued, “Many of our clients are seeking to maximise R&D and come to us to help ensure they reap the greatest tax benefits in doing so. Our start-up clients are often unaware of what they can claim for and so benefit from our guidance in maximising this opportunity”.
According to the ONS, the government’s funding of firms’ R&D totalled £1.7 billion in 2018, which accounted for 6.9% of all R&D expenditure.
Not sure whether you can benefit from R&D tax credits? Get in touch with the team at Barnett Ravenscroft for a no obligation chat.