NEW statistics show there was a 14 per cent year-on-year rise in the number of claims for research and development tax credits submitted by South East businesses in 2015-16.

First introduced in 2000, R and D tax credits are designed as a tax relief to encourage greater spending and innovation.

They work by reducing a company’s tax bill by an additional amount depending on the company’s allowable R and D expenditure.

James Tetley, tax partner at RSM said: ‘The increase in the number of claims and the level of support given to South East companies is impressive.

“This reflects a continuing growth in the awareness of these important tax reliefs. Claims have continued to increase.”