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 £41,000.
This is almost half the £85,000 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."