Any company, regardless of its industry, can claim R&D tax relief so long as they are carrying out qualifying R&D activity.
However, there are a few industries that claim significantly more R&D tax relief than others. Below is a list of the top 10 industries by their share of R&D claim value in 2022-23 (the latest available figures):
| Rank | Industry | R&D Tax Claim Value (% share of) |
|---|---|---|
| 1 | Information & Communication | 25% |
| 2 | Manufacturing | 24% |
| 3 | Professional, Scientific & Technical | 17% |
| 4 | Construction | 9% |
| 5 | Admin & Supportive Services | 7% |
| 6 | Wholesale & Retail Trade | 6% |
| 7 | Agriculture, Forestry | 2% |
| 8 | Health & social work | 2% |
| 9 | Finance & Insurance | 2% |
| 10 | Arts, Entertainment & Recreation | 1% |
Claiming from a less innovative industry
While certain industries dominate R&D tax relief claims, businesses in any sector can be eligible if they are conducting activities that meet HMRC’s definition of research and development. It’s important to understand that innovation alone is not enough. To qualify, your project must aim to achieve an advance in overall knowledge or capability in a field of science or technology, through the resolution of scientific or technological uncertainty.
For example, if a food scientist or R&D manager (competent professional) oversees a project where a frozen cocktail maker aims to develop a novel freezing process based on scientific principles, it might qualify for R&D tax relief.
We’ve worked with a range of businesses, including those in seemingly less innovative sectors, to help them identify and claim for qualifying R&D. The key is to carefully assess your activities against HMRC’s guidelines to determine eligibility.
If your business is doing innovative work, then you may well be able to claim. Read our guide to R&D tax relief eligibility, understand the qualifying R&D costs, and get in touch with our team if you want to find out whether you are eligible for an R&D tax relief claim.
