Source Advisors Logo

HMRC statistics – our commentary

HMRC has provided information on the number of companies claiming research and development (R&D) tax credits and Patent Box projected for the year 2021-22. The value of tax relief given to UK’s innovative companies in 2021-22 is projected to increase by 5%. The total value of R&D tax relief is still projected to be nearly £7.6bn and the value of Patent Box relief is projected at £1.36bn.

Why are SMEs claiming R&D tax relief but not Patent Box?

Here at Source Advisors, we know our SME clients are innovating every day, resulting in significant rewards under the R&D tax relief scheme. Unfortunately we don’t see those same companies capturing and commercialising that innovation with an IP strategy or through a patent. The barriers could be:

Value claimed through R&D schemes

Projected for the tax year 2021-22

Value claimed through Patent Box

Projected for the tax year 2021-22

R&D is a good indicator of a company’s potential for a Patent Box claim – it’s a conversation that every R&D tax relief claimant should be having.

Welcome to our new website. GovGrant is now known as Source Advisors. To find out more click here