HMRC's annual report for research and development (R&D) tax credit claims for the year 19/20 found the manufacturing industry to have one of the top two highest number of claims compared to other sectors, with the industry getting back £1,860m.

HMRC's annual report for research and development (R&D) tax credit claims for the year 19/20 found the manufacturing industry to have one of the top two highest number of claims compared to other sectors, with the industry getting back £1,860m.

A total of 85,900 claims were made overall, with 18,955 being submitted from manufacturing for the year ending 31 March 2021. This figure will continue to rise as the 19/20 claims window remains open until March 2022.

Manufacturing made up 22% of claims, with the average industry claim value siting at approximately £48,000.

The only other industry to match this number of claims was the Information and Communications sector, also making up 22%, closely followed by Scientific and Technical at 19%.

R&D tax specialist Access2Funding works with clients across all sectors to identify and maximise HMRC R&D tax credit claims.

Talking about the report, Brian Sainsbury, Access2Funding partner and manufacturing specialist, said: "The advent of smart technology and AI (artificial intelligence) has resulted in the manufacturing industry becoming more productive, sustainable and cost-effective. This in turn, has meant an increase in innovation within the manufacturing industry, as evidenced in HMRC's latest R&D report.

"As manufacturers are becoming more au fait with industry 4.0 and embracing intelligent manufacturing operations, this is allowing for innovation at an increased rate than we've seen before. Manufacturers embracing Industry 4.0 could be eligible to claim R&D tax credits for their innovative advancements, with process improvement and testing, and software development falling into the qualifying criteria. HMRC's R&D tax relief scheme was created to reward businesses for investing in innovation, and the revolution of Industry 4.0 complements the scheme well."

Access2Funding is the fastest growing R&D specialist in the UK. It has so far claimed back over £44m of R&D for businesses and has offices across the country, from the Scottish Highlands across to Northern Ireland and down to Kent.

For more information visit the website or email hello@access2funding.co.uk