Understanding the importance of R&D Tax Claims and Grant Funding

R&D Tax claims and Grant Funding enables companies to continuously innovate, gain competitive advantage and achieve sustained, profitable growth.

Understanding the importance of R&D Tax Claims and Grant Funding

Technology is evolving daily, leveraged by businesses to secure competitive advantage and well-positioned to upgrade the lives of the global family. Research and Development (R&D) is the process by which this evolution takes place, as businesses undertake activities which seek to further expand the boundaries in an attempt to create new, or improve existing, services, processes and products.

Although many companies commit significant amounts of expenditure in undertaking compliant R&D activities, many choose to focus solely upon the commercial potential of their endeavours, paying little heed to projects which ultimately fail to deliver the desired outcome, other than to consign them to ‘Room 101’.

The R&D Tax Credit scheme

R&D Tax Credits were introduced to the UK at the turn of the Millennium to encourage businesses to push the ‘innovation envelope’ beyond its’ current limitations. In doing so, these innovators would be entitled to enhanced corporation tax relief on the expenditure incurred across a defined range of criteria in undertaking those activities (specifically staffing, subcontracting, materials and external service providers) in the form of a refund (for tax already paid), a reduction in a future tax liability or – unique to the legislation – in a one-off cash award in exchange for taxable losses surrendered.

If used correctly, a company can utilise different Innovation funding initiatives at the same time, however, it is essential to seek advice from a specialist such as Innovation Tax who have extensive knowledge and experience of helping companies identify and maximise the innovation funding pathways open to them.

Grant Funding for Innovative companies

Where businesses seeking to engage in compliant R&D activity are not able to do so through a lack of financial resources, various R&D grant funding initiatives are available for use in developing new products, processes or services. These initiatives may vary widely in both value and/or eligibility and may also preclude/restrict the recipient from subsequently claiming R&D Tax credits for the work undertaken.

Innovation Tax are R&D tax claim and Grant funding specialists

Companies don’t need to be undertaking ground-breaking innovations – such as developing the next space shuttle or employing staff in white lab coat – to qualify, can be of any size and be operating in any sector. So it pays to have a specialist with a large amount of experience and knowledge in the field to advise whether your business is entitled to make a claim.

Whether you are looking to reclaim expenditure previously incurred in undertaking innovative activities, or simply looking for a means of funding similar activities in the future, it’s essential that you choose the right specialist partner to guide you through the process. Innovation Tax have a wealth of experience in helping businesses advance down either path, so why not call today to see how you can join the innovation highway……?

HOW CAN WE HELP?

It can be challenging to submit an R&D tax credit claim to HMRC’s exacting standards. At Innovation Tax our team of experienced sector specialists, technical and quality assurance experts and tax professionals will help you identify the full extent of your qualifying activities and expenditure and work with you to ensure the correct information is included in the claim documentation, giving you peace of mind that your claim is robust, maximised and defensible.

Start the conversation with a complimentary, no-obligation discussion.

Innovation Tax specialise in helping companies access vital innovation tax incentives and grant funding to enable their businesses to grow, increase profitability, reduce risk and enable further investment in R&D, IP and capital assets.

Understanding the importance of R&D Tax Claims and Grant Funding