Research and development tax claims under reported

HM Revenue & Customs (HMRC) reports show that they have under reported the number of companies making Research and Development tax claims.


The comparison between the 2017 and 2018 HMRC Research and Development Tax Credits Statistics show that a huge amount of company claims was under reported between 2015-2016.

The HMRC statistics, that are written up yearly, provide information on the number of companies claiming Research and Development tax credits and the cost of providing that support.

The 2017 report states that the total number of claims between 2015-16 rose to 26,255, an increase of 19% from 2014-15. However, the 2018 report states that the number of claims between 2015-16 was at 43,040, an increase of 22% from 2014-15. This shows that 16,785 claims were previously missed off the 2017 report. No reason is given for this in the report.

Manufacturing is one of the largest industry sectors, and is one of the sectors where the number of claims is in correlation with the amount claimed. It has the greatest volume of claims of any industry sector, making up a total of 27% of claims and 30% of the total amount claimed for in 2015-16.


Managing Director of R&D Tax Claims, Mark Evans stated:

“The HMRC statistics show that they have under reported a number of companies making R&D tax claims by a massive amount. If you compare the 2017 report with the restated figures in 2018 report, the understatements are huge. Whatever the reasons for this, the fact remains, in the current climate of uncertainty, claiming R&D tax relief is more important than ever for the UK companies as a whole and for the manufacturing sector in particular.”

For more information about the HMRC Research and Developments Tax Claims and your business’ eligibility, get in touch with our team here

Back to News

R&D Tax Claims Explained

Find out how you can claim from the government tax incentive scheme designed to encourage companies to invest in R&D.

About the Scheme

A government incentive that rewards UK companies for spending on innovation.

Learn More
The Benefits

Receive a cash credit, lowered corporation tax bill or a combination of the two.

Learn More
The Process

Tried and tested process with six easy steps which can be completed in 12 weeks or less.

Learn More
Claim Eligibility

Have you developed new or improved products or processes?

Learn More

Latest News

Preventing Abuse of R&D Tax Claims

In total, HMRC have prevented over £300m worth of fraudulent R&D tax claims. But the Revenue recognised there was still work to be...

Read More

Black Country SMEs Missing Out on R&D Tax Refunds

As experts in securing Research & Development tax savings, we highlight our concerns that local businesses are missing out on earned...

Read More