Manufacturing Sector Cashes In On R&D Tax Breaks With 8% Annual Jump In Value

Phil Black - PII Editor 18/10/2021

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The reward that UK manufacturing businesses are reaping from tax breaks for research and development has leapt 8% in a year, analysis of latest HMRC data by R&D tax specialist Catax reveals¹.

The amount these companies are spending on R&D has also risen 8% to £14.1bn, while the number of claims made has risen at least 11.1%.

Mark Tighe, CEO of R&D tax relief specialist Catax, commented:

“The manufacturing sector is one of the largest claimants for this sort of tax benefit.

“It has shown its capacity to continue to innovate despite this latest year overlapping with a period of significant Covid disruption.

“Not only has R&D expenditure risen, but the number of companies claiming has also shot up, which is probably due to a combination of factors. Some firms will be engaging in this kind of work for the first time, possibly driven by environmental concerns as companies in polluting industries bid to become greener, while others will have only recently discovered they were eligible for these tax benefits, having perhaps missed out in previous years.”