R&D Tax Credits are designed to drive innovation, and farmers have now been urged to look into the initiative
New statistics have revealed that the UK agriculture industry benefited just £10m from the Government’s R&D Tax Credits in 2017.
The agriculture industry accounted for less than 1% of all claims submitted, highlighting that the industry hasn’t tapped into the potential of the initiative.
Research and Development (R&D) Tax Credits are a UK tax incentive designed to encourage companies to invest in R&D.
Companies can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure.
The annual statistics from HMRC include information about the number of claims for R&D tax credits and the associated cost.
The average value received per R&D Tax Credit claim by agriculture, forestry and fishing businesses was ÂŁ41,000.
This is almost half the ÂŁ85,000 average overall payment per claim across the industries surveyed, which includes sectors such as manufacturing that engage in R&D activity daily.
The Momentum Group, a UK advisory firm solely focused on R&D Tax Credits, says most agriculture businesses are either not aware of the credits, incorrectly think they do not qualify or feel they lack the necessary experience to submit a claim.
Tom Verner, Group Managing Director said: "It is vital that the agriculture, forestry and fishing industry recognises the potential of this very accessible UK government incentive."