Claim R&D Tax Relief, Capital Allowances, Grant Funding and Energy Tax Incentives for Engineering using our experts.
- Helping you finance innovation and business growth
- Enabling you to recover a proportion of R&D costs
- Maximise your tax relief on commercial property assets
Tax Incentives and Grants for Engineering Projects
We specialise in various Tax Incentives & Grants
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Innovation Tax specialise in helping companies access vital funding and tax incentives through our multi-disciplinary team of industry-wide R&D technical & sector specialists, Chartered RICS Surveyors, Intellectual Property experts, Taxation professionals and Bid Writers.
- Experts you can Trust
- Highest standards of Quality
- Over 90 Years combined Experience
R&D Tax Credits for
Engineering
Tax Incentives and Grants for Engineering Projects
For tax purposes, research and development (R&D) is defined as work that seeks to resolve technical uncertainties in creating or improving a process, product, or service. This includes overcoming challenges where solutions are not readily available or where existing knowledge is insufficient. Examples might include:
Tax Incentives and Grants for Engineering Projects
Engineering companies thrive on solving technical challenges and pushing the boundaries of innovation. Whether it’s appreciably improving engineering techniques, advancing product development, or creating new/improved engineering solutions, these efforts may qualify for R&D Tax Credits.
The scheme is designed to reward activities that address scientific or technological uncertainties, providing significant financial relief for eligible projects.
- Developing and testing prototypes where there is significant technical uncertainty.
- Enhancing manufacturing processes specifically to resolve technical challenges.
- Overcoming design and production obstacles that require innovative solutions.
- Automating complex engineering tasks through novel systems and processes.
- Conducting experimental feasibility studies for technical breakthroughs.
- Developing software aimed at solving technical challenges within engineering operations.
- Testing and improving materials or techniques to meet performance specifications.
- Integrating advanced technologies (AI, robotics, IoT etc) to improve productivity.
- Designing lightweight, high-strength materials for specific engineering applications.
- Sensor systems for real-time monitoring of industrial machinery in extreme environments.
- Non-standard machining techniques for complex geometries or materials.
How is the benefit paid?
The R&D Tax Credits scheme provides two primary sources of relief:
1.
Corporation Tax Reduction
If your company is profit-making, the tax liability can be reduced (or a tax refund obtained for historical periods) by the value of the claim.
2.
Cash Payment
For loss-making companies, a 10/14.5% tax credit may be available, offering between 16-33% of eligible R&D expenditure back to your business.
Innovate, Invest and Grow
Navigating the complexities of R&D funding can be overwhelming and that’s where we step in. Our mission is to simplify the process and help Engineering companies unlock the funding they deserve.
Here’s how we make it happen:
- Expert Guidance: Our thorough understanding of R&D Tax Credits and Grant Funding schemes help us identify the opportunities best suited to your business.
- Tailored Approach: Every business is unique so we take the time to understand your projects, ensuring you claim the eligible funding you are entitled to.
- End-to-End Support: From assessing eligibility to preparing and submitting claims, we handle every step of the process with precision and care.
- Grant Applications: Beyond tax incentives, we assist you in identifying and applying for grant funding competitions which align with your growth objectives.
How much is the R&D Tax Credit Relief Scheme worth?
Tax Incentives and Grants for Engineering Projects
Post April 2024: Up to 21.5% Net Benefit
Post April 2023: Up to 16.2% Net Benefit
Post April 2023: Up to 26.97% Net Benefit
Post April 2024: Up to 16.2% Net Benefit
R&D Tax Credits Claim Process
01.
Introduction
We arrange a meeting to discuss your business, qualifying criteria and how they might impact on one another.
02.
Prequalification
We conduct a thorough assessment to ensure your activities/projects comply with the incentive criteria.
03.
Information Gathering
We work closely with your key personnel to gather all the information required to support your application.
04.
Report Compilation & Review
We draft your application and forward you a copy for review to provide reassurance that the content is a true representation of your application.
05.
QA & Submission
Once you are happy with the application draft, we conduct an internal quality assurance check to ensure all requirements are satisfied before formal submission.
Grants Funding for
Engineering
Tax Incentives and Grants for Engineering Projects
Grant Funding is a government-backed initiative designed to support businesses by providing financial assistance to drive growth and innovation. It helps businesses across various sectors, from start-ups aiming to establish themselves to established companies looking to scale up.
Grant funding accelerates ambition, turns visions into reality, and enables businesses to explore new opportunities, develop innovative solutions, and achieve long-term success.
What project activities qualify for Grant Funding?
The engineering sector is at the heart of many grant initiatives, especially for projects focused on sustainability, innovation, and digital transformation. Securing funding can provide the financial boost needed to take your projects to the next level.
Innovation Tax continuously monitor the market for funding competitions and opportunities available to UK companies. Although each grant awarding body has different priorities across various sectors, they target to ensure only the best projects are funded. The range of activities which can be supported by grant funding are many and varied, including:
- Advanced manufacturing grants
- Upgrading engineering equipment
- Grants for new engineering techniques
- Eco-friendly production funding
- Regional incentives for growth
- Upskilling support for engineers
- Funding for AI and robotics projects
- Renewable energy pilot grants
- Recycling and waste reduction funding
- Automation / Robotics
- Collaboration grants with universities
- Predictive maintenance systems
What Grants are available for Engineering Businesses?
Tax Incentives and Grants for Engineering Projects
01.
Innovate UK
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02.
UKRI
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03.
SBRI Healthcare
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04.
Govt. Departments
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05.
Industrial Strategy Council
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06.
Councils & Growth Hubs
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07.
European Innovation Council
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08.
Horizon Europe - EU Commission
Read more →
How can we help
Navigating the grant landscape can be complex. We guide you through identifying the most relevant opportunities, preparing applications, and securing the funding you need to lead in innovation.
Capital Allowances for Engineering companies
From high-tech machinery to factory improvements, engineering companies often invest heavily in tangible assets. Capital Allowances allow you to offset these costs against your taxable profits, freeing up resources to reinvest in your business.
Capital Allowances recognise expenditure incurred in the purchase of commercial properties and other assets as a tax allowable expense (unlike ‘depreciation’), reducing taxable profits and the associated tax liability; furthermore, claiming Capital Allowances do not increase your future capital gains tax liability if the property is subsequently sold.
The majority of individuals and companies entitled to claim Capital Allowances on commercial property expenditure have not claimed their full entitlement and have therefore failed to maximise their tax relief.
Capital Allowances
Qualifying Expenditures
- Acquisition of Commercial Property
- New Builds
- Furnished Holiday Lets
- Refurbishment / Fit Out
- Extensions
How can we help
Our highly skilled and experienced team of Chartered RICS Surveyors, technical and taxation professionals work with companies to identify all qualifying activities and associated expenditure. We use a bespoke claim methodology to ensure the claim is legitimate.
Unlock Energy Tax Savings for Engineering companies
Engineering companies leading the way in energy efficiency and renewable energy adoption can benefit from a range of energy tax incentives. These not only reduce operational costs but also enhance your company’s sustainability credentials.
If your business belongs to an energy-intensive sector, you could claim back up to £25,000 for every £100,000 spent on energy, helping you insulate against rising operational costs. To be eligible, companies must meet specific meet HMRC and BEIS requirements, sector requirements, and undergo evaluations such as historical usage analysis.
We help you identify, explore and claim Energy Tax Incentives
01.
Scheme Identification
We will help you identify which energy scheme (Climate Change Levy, Energy Intensive Industries, UK ETS Compensation Scheme) you are entitled to claim.
02.
Claim Compilation
We will prepare the claim reports in compliance with the legislative framework and guidance to ensure your claim is fully justified and calculated correctly.
03.
Ongoing Support
Once your claim has been submitted, we will follow this through to completion and will assist with producing the quarterly and annual reporting as necessary.
Transform Engineering Innovation
Unlock the financial incentives you deserve with R&D Tax Credits, Grant Funding, and the Patent Box. From pioneering treatments to advancing medical technologies, we’re here to support your journey.
Tax Incentives and Grants for Engineering Projects
Schedule a free consultation with our specialists to explore your opportunities.
Other services to access funding
Tax Incentives and Grants for Engineering Projects
Patent Box →
Our Patent Box service aids companies in benefiting from reduced tax rates on profits derived from patented inventions, providing substantial tax relief.
HMRC Enquiry Support →
We provide expert assistance in responding to HMRC enquiries, ensuring the response is clear, sufficiently detailed and in-line with HMRC's expectations.
How we will support you
Your Trusted Partner for Engineering Tax Incentives
Serving engineering companies across the UK, we’re dedicated to helping you achieve your financial goals. Contact us today to start your journey toward greater profitability and growth.
- Grant Matching: We identify the most suitable funding opportunities, from sector-specific programmes to regional initiatives, ensuring you capitalise on available grants.
- Accurate Patent Box Computations: Our chartered accountants calculate qualifying profits under the latest HMRC guidelines, minimising risks and ensuring compliance while maximising savings.
- Comprehensive Tax Relief Applications: We handle every aspect of claim preparation, submission, and compliance, providing robust documentation to support your case.
- Strategic Guidance: We help align your innovation strategies with tax incentives and funding opportunities to drive long-term success.