Quarrying firms benefitted from £75 million in R&D tax credits
Companies receiving highest average payment per research and development tax claim
THE Momentum Group, a leading UK tax credit advisory firm, based in Northern Ireland, have welcomed newly published statistics from HMRC that show the British mining and quarrying industry claimed a total of £75 million in research and development (R&D) tax credits in 2017.
However, the latest annual statistics show there has been a slight decrease in companies claiming R&D tax credits, which are designed to drive innovation. Despite submitting the lowest overall number of claims, the UK mining and quarrying sectors received £10 million more in R&D tax credits (compared to 2016) and received the highest average payment per claim.
London had the most claims while Northern Ireland businesses were significantly behind other UK regions. The average received per R&D tax claim by mining and quarrying companies was £882,000. This is almost ten times more than the average £85,000 payment per claim in the other industries surveyed.
Momentum Group managing director Tom Verner commented: ‘While HMRC statistics show many industries in the UK are wakening up to the benefits of R&D tax credits, the potential is far greater. In our experience, there are still so many mining and quarrying businesses that are either not aware of R&D tax credits; incorrectly thinking they do not qualify or feel they lack the necessary experience to submit a claim. In fact, many companies are not claiming their full legitimate entitlement.’
He continued: ‘We helped a record number of companies with R&D tax credit claims in 2017. These are often highly innovative companies, who can reinvest these savings into technological innovation that bolsters their businesses, exports, employment and the local economy in the wake of Brexit.’
Momentum are calling on more quarrying and mining businesses to act now on R&D tax credits, highlighting that the regional statistics could be much higher given the increasing investment in exports.
Mr Verner said: ‘It is vital that quarrying and mining companies recognize the potential of this very accessible UK government incentive. While seeking in-depth advice is vital, with an increasing number of accountancy practices availing of our R&D expertise, we assist businesses every day that have benefitted by up to hundreds of thousands of pounds.’