Growth Hub intermediary partner, Tax Insight, looks at how R & D tax credit can affect a business.
Each year Tax Insight identifies significant tax credit and grant funding for innovative companies. The recent ‘Brexit' decision is unlikely to adversely impact upon this for two reasons:
First, the UK Science Committee have raised the issue of EU Grant partnership funding in Parliament and received complete assurance that the UK Government will stand in the shoes of the EU research and development incentives pound for pound. Research and development incentive reliefs can now recover £35,000 per £100,000 of costs. With four employees in a typical business, this relief hires a fifth staff member for free!
How would grant funding impact on this? HMRC rules mean no double tax relief is possible but with careful planning, it is possible to use ‘early phase' grant funding in the important start-up of the SME. Tax Insight have advised many clients on how to make the most of both opportunities.
Engineering and manufacturing
Both highly innovative industries, Tax Insight have advised clients in engineering and construction to obtain significant funding for technical high spec work. Niche manufacturing often involves research and development and we have many specialist manufacturers (food/healthcare/building products) to make the most of the opportunity.
Space and satellite sciences
Obvious research and development industries have a range of ‘special incentives' on offer as the UK Government targets specific ‘Frontier' technologies for extra funding and grant incentives. The 2016 and 2017 Budgets contained special announcements to help these and other key sectors. Tax Insight have been able to assist a range of clients with funding in these important industries.
Many research and development companies operate outside of the traditional ‘tech' / ‘pharma' industries. Tax Insight have been able to obtain funding for a range of client situations, including innovation in:
- Aviation skills
- Motor industry, motor craft, sea sports
- Food, fishing and agricultural businesses
- Animation, creative sector, film and TV production
- Healthcare providers
- Engineering and construction
Our 2016 analysis showed that using a specialist advisor helps businesses recover upward of 45% more funding than using an accountant or filing in-house.
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