Published today, HMRC’s research and development (R&D) tax credits statistics clearly show that the incentive is serving its purpose to help businesses innovate and take risks.

The value of R&D expenditure against which claims were made has increased by 31% on the previous year.

It’s also positive to see the number of claims being made continue to rise. However, this increase is not as significant as we would have expected, particularly in comparison to last year’s statistics.

Ultimately, more still needs to be done to educate businesses about R&D tax credits and their value. This is a view backed up by our recent A Nation of Innovators survey and subsequent report which clearly demonstrates a widespread lack of understanding about the incentive amongst UK businesses.

ForrestBrown managing director Simon Brown, explains the ForrestBrown view in full: