--- title: HMRC publish annual report on R&D Tax Credits description: HMRC have published their annual report on R&D Tax Credits claimed in the UK, setting out the value of claims, regions and industries for claims made. image: https://blog.shorts.uk.com/hubfs/Stock%20images/London%20-%20Palace%20of%20Westminster%2c%20UK-2.jpeg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [RADIUS - R&D Tax Relief & Patent Box](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) # HMRC publish annual report on R&D Tax Credits Darryl Hoy - 19 October 2020 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Stock%20images/London%20-%20Palace%20of%20Westminster%2c%20UK-2.jpeg) HMRC have released their 2020 annual report on R&D Tax Credits claimed in the UK.  The report sets out the value of claims made, the regions and industries within which companies have claimed in the last twelve months. The most recent statistics indicate that both the number of R&D claims and the amount claimed continues to grow.   ## Which regions benefitted most from claiming R&D Tax Credits? The majority of the relief claimed goes to companies in London and the South East. Less than £200m out of the total of £5.1bn which was paid in R&D tax relief in 2018/19 went to companies in Yorkshire and the Humber, with just over £200m going to companies in the East Midlands. Could more companies in our region be claiming this relief?   We would certainly encourage all companies to ensure they have explored their entitlement to claim their share of this funding.   ## Which sectors are claiming R&D Tax Credits? In addition to a split in claims by geography, certain sectors also claim a significant proportion of relief. - Claims by companies in the manufacturing sector still make up the most of any sector claiming, with approximately 27% of all support given under the R&D scheme going to companies in this industry. - Unsurprisingly given how much software infiltrates all aspects of life these days, claims from the tech sectors generate the second highest number of claims, although the amount claimed per claim is lower than in other sectors (possibly because there are lower qualifying costs in this sector, with fewer consumable costs and more sub-contracted expenditure). - The Professional, Scientific and Technical sector also benefits to a significant degree, claiming almost £1.2bn of the total relief in the year. ## What is the average R&D Tax Credit claim worth? If your business is already claiming R&D tax relief, then the recent statistics highlight a point for you to consider – approximately 34% of all claims made by SMEs are for costs of less than £10k, and over 10,000 of claims made are for costs of less than £5k. To us this high number of small value claims is surprising and not in line with our experience of the market. Typically, we see tax savings around the £30k mark and upwards (derived from qualifying costs of around £120,000) and so it may be that some companies are not maximising their claims.  *" If you feel your claim is small, it may be worth obtaining an independent review to ensure you aren’t missing out. "*   ## Is it worth claiming R&D Tax Credits? R&D tax credits have been a key part of the UK tax system for 20 years, with more that £33bn of relief being claimed by innovative companies in that period. The relief is extremely valuable, being worth up to almost £250 in tax saved for every £1,000 of qualifying expenditure, with loss making companies also being able to benefit by exchanging losses for a cash payment from HMRC. [Radius](https://www.shorts.uk.com/radius/) are creditable specialists in preparing and submitting R&D tax relief claims and follow a simple three step processes to ensure we minimise the amount of time the business needs to spend producing the claim. Our team includes and ex-HMRC R&D Inspector for added reassurance we will maximise the relief you can claim within the rules set out in the legislation. We have never had a claim amended as a result of a HMRC enquiry.  It is also worth noting that, for a number of reasons, the cost of supporting the R&D credits has increased substantially from 2012/2013, increasing from c£1bn to c£5bn. Going forward it is not difficult to imagine HMRC shining more of a spotlight on R&D claims submitted and we would encourage anyone seeking to claim to ensure they take expert advice.   Claiming R&D tax credits is simpler than you may think. So if your business is making an ‘appreciable’ improvement in technology or science, you could join the thousands of innovative companies nationally that have already benefited from R&D tax reliefs. To find out more, please contact a member of the [Radius team](https://www.shorts.uk.com/about/team/?person_name=&department=radius-rd-patent-box&position=) and let us show you how easy it is to make your innovation pay.    ## Are you elibilble to claim? To discover whether you are eligible to claim, download our eligibility checklist. It takes less than 10 minutes to review. [![Download](https://no-cache.hubspot.com/cta/default/2442072/f983f442-7199-4129-a7f9-51c52123cc3c.png)](https://cta-redirect.hubspot.com/cta/redirect/2442072/f983f442-7199-4129-a7f9-51c52123cc3c)   Related links - [Radius case study - Penny Hydraulics Limited](https://www.shorts.uk.com/casestudies/penny-hydraulics/) - [Download our guide to making a successful R&D tax relief claim](https://info.shorts.uk.com/r-d-tax-credits-guide-to-making-claim) - [Visit our resource library for more guides](https://www.shorts.uk.com/resource-library/) - [Download our 2020 tax saving guide](https://info.shorts.uk.com/en-gb/2020-tax-saving-guide) - [R&D Tax Relief can improve your cashflow](https://blog.shorts.uk.com/rd-tax-reliefs-enhance-cashflow) ![author](https://blog.shorts.uk.com/hubfs/darryl.png) #### Darryl Hoy Darryl is the Technical Director of the Radius team. He is a specialist in Research & Development tax reliefs, having previously worked at HMRC as an R&D Tax Inspector. [View my articles](https://blog.shorts.uk.com/author/darryl-hoy) Tags: [RADIUS - R&D Tax Relief & Patent Box](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. [ Download now ](https://info.shorts.uk.com/en-gb/tax-saving-guide) ![Tax saving guide 2026-27](https://blog.shorts.uk.com/hs-fs/hubfs/Tax%20saving%20guide%202024.jpg?width=375&height=465&name=Tax%20saving%20guide%202024.jpg) ###### Related articles ##### [Autumn Statement 2023: R&D Tax Relief Changes](https://blog.shorts.uk.com/autumn-statement-2023-rd-tax-relief-changes) ##### [How long does an R&D Tax Credit claim take?](https://blog.shorts.uk.com/how-long-does-an-rd-tax-credit-claim-take) ##### [Almost half of claims invalid under new R&D rules](https://blog.shorts.uk.com/radius/almost-half-of-claims-invalid-under-new-rd-rules) ##### [HMRC release 2025 R&D tax relief claim statistics](https://blog.shorts.uk.com/hmrc-release-2025-rd-tax-relief-claim-statistics) ###### Latest articles [A case of aggressive tax avoidance: Glasgow Rangers Football Club](https://blog.shorts.uk.com/aggressive-tax-avoidance-affect-you) [What is VAT? - Complete Guide (Updated for 2025/26)](https://blog.shorts.uk.com/what-is-vat) [Ashgate Hospice Sparkle Night Walk 2026](https://blog.shorts.uk.com/ashgate-hospice-sparkle-night-walk-2026) [Stocktaking guide for UK businesses](https://blog.shorts.uk.com/stocktaking-guide-for-uk-businesses) [Supporting the Chatsworth Cascade for future generations](https://blog.shorts.uk.com/supporting-the-chatsworth-cascade-for-future-generations) [Deal of the Year win at Insider Dealmakers Awards 2026](https://blog.shorts.uk.com/deal-of-the-year-win-at-insider-dealmakers-awards-2026) [Football shirt Wednesday: Backing England in style](https://blog.shorts.uk.com/football-shirt-wednesday-backing-england-in-style) [Understanding lifetime trusts: the basics](https://blog.shorts.uk.com/understanding-lifetime-trusts-the-basics) [Close company directors face new HMRC detail requirements in 2026](https://blog.shorts.uk.com/close-company-directors-face-new-hmrc-detail-requirements-in-2026) [Shorts advise Harris Irwin Architects on successful growth funding.](https://blog.shorts.uk.com/shorts-advise-harris-irwin-architects-on-successful-growth-funding) #### About Us Use this little footer to reinforce your message about who you are and why people love working with you. 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