The reward that UK hospitality businesses are reaping from tax breaks for research and development has leapt 25% in a year, analysis of latest HMRC data by R&D tax specialist Catax reveals.
The amount that firms in the accommodation and food sector claimed in tax reliefs rose 25% to £20m in 2019/20, according to tax credit statistics released last week by the Government.
The amount these companies are spending on R&D has DOUBLED to £140m, while the number of claims made has risen 12.6%.
Mark Tighe, CEO of R&D tax relief specialist Catax commented:
“The hospitality industry may be relatively small in R&D terms but this latest snapshot from the government demonstrates how it is ramping up the amount it is extracting in tax breaks for innovation, despite this latest year overlapping with a period of significant Covid disruption.
“Not only has R&D expenditure among claimant firms doubled, but the number of companies claiming has also risen significantly, which is probably due to a combination of factors. Some firms will be engaging in this kind of work for the first time, while others will have only recently discovered they were eligible for this form of tax relief, having perhaps missed out in previous years.”