A Guide to Innovation Tax Incentives and Grant Funding
In this article we cover some of the many funding schemes which businesses looking to grow can take advantage of, starting with Innovation tax incentives:
In 2000, the Government introduced a scheme to encourage scientific and technological innovation in the UK. The R&D Tax Credit is a relief against Corporation Tax (CT) which either reduces your liability in prior (or future) years or, if you are loss-making for tax purposes, may entitle you to receive a cash tax credit payment.
There are two scheme variants dependent upon whether your business qualifies as an SME or as a ‘large’ company. Either way, we establish this with you before the process begins.
The Patent Box scheme aims to create a competitive tax environment for companies to develop and exploit patents in the UK, supporting business investment and growth. It is a key element in the Governments’ Growth Plan to provide additional incentives in order to develop, commercialise and retain the best technologies and inventions in the UK.
If your business has any pending or granted patents, you could be eligible for a significant tax saving as profits from the patented product (or process) may qualify for a reduced corporation tax rate of just 10%.
Creative Industries Tax Relief
Creative industry tax reliefs are a group of 8 corporation tax reliefs which allow qualifying companies to claim a larger deduction when calculating their taxable profits, or in some circumstances claim a payable tax credit.
As with R&D Tax Credits, these reliefs work by increasing the amount of allowable expenditure, thus reducing taxable profits and the associated tax liability. Where the reduction eliminates taxable profits altogether, you may be able to surrender the resultant taxable loss, converting some (or all) of it for a payable tax credit.
The Reliefs include:
- Film Tax Relief (FTR)
- Animation Tax Relief (ATR)
- High-end Television Tax Relief (HTR)
- Children’s Television Tax Relief (CTR)
- Video Games Tax Relief (VGTR)
- Theatre Tax Relief (TTR)
- Orchestra Tax Relief (OTR)
- Museums and Galleries Exhibition Tax Relief (MGETR)
Grants also provide a valuable source of Government funding support for businesses across a wide range of sectors
Some of the main UK Grant awarding bodies are:
Our expertise is on hand to help you submit a winning bid
Direct access to Innovation Tax’s dedicated specialist bid writing team will boost your chances of success by ensuring your business is funding-ready, guiding you though the process, structuring the application to the highest standard and helping draft the application with input from your team to ensure all costs are in scope and fully justified.
HOW CAN WE HELP?
Innovation Tax know what it takes to be successful in securing the grant funding you need to innovate and grow. We provide a bespoke range of grant services, from one-off funding consultancy, or grant application/bid writing, to end-to-end management of the funding process; enabling companies of all sizes, industry sectors and locations to identify, apply for and successfully tap into the large range of grants and subsidies available.