Save ￡1000’s With This Innovation Funding

There’s no denying that innovation harbours a range of benefits for businesses, but as the cost of research and development practices pile up, some forward thinking businesses may be deterred.?

With innovation funding, cutting edge projects become more accessible. And with one form of innovation funding offering a fast return on investment for research and development, businesses are encouraged to invest in bold ideas.

What is Innovation Funding?

Innovation funding is designated financial support that assists in the development of new services, software and products. Some of these funds may also be used to explore new processes that optimise business practices.?

Feeding into the British government’s plan to position the UK as an innovation hub, many of these funding opportunities promote collaborative projects, encouraging an exchange of knowledge that may lead to further innovation down the line.?

3 Major Benefits of Innovation Funding

From a business perspective, innovation funding provides financial opportunities that when combined with other business practices, can prove fruitful. Some of the major benefits of innovation funding include:?

1. Harbours economic growth With funds that allow businesses to optimise processes through innovation, daily operations are streamlined, allowing employees to turn their focus to more important tasks that drive economic growth
2. Drives competitiveness By allocating funding that introduces new innovations to the market, businesses are able to swiftly solve customer problems, setting them apart from competition
3. Enhances collaboration Many innovation funds allow businesses to collaborate with organisations and other businesses, making way for an enhanced shared knowledge that can fuel future innovation

Innovation Funds Available in the UK

Here in the UK, there are a wide range of opportunities for businesses looking to raise money for research and development. While some may turn to investors, others may look towards funding that is specifically designated to innovation.?

Some of the most affluent innovation funds in the UK include:?

1. Innovate UK grants: provides funding to support businesses working on innovative projects across various sectors
2. Industrial strategy challenge fund (ISCF): supports businesses involved in high tech, high impact research and development projects
3. Horizon Europe: the EU’s largest funding program for research and innovation, open to UK businesses involved in collaborative R&D projects
4. R&D tax credit relief: incentivises innovation in science and technology for businesses throughout the UK

How R&D Tax Credits Can Save You ￡1000’s

Unlike many other innovation funds, R&D tax credits provide a guaranteed return on investment for qualifying research and development projects.

Funded by the British government as part of their aim to present the UK as an “innovation hub”, this incentive allows businesses to claim up to 33% of their investment in research and development. Given the generosity of this fund, the average business receives around ￡63,000 in R&D tax credits.

As this fund is managed by HM Revenue & Customs , businesses must adhere to the following eligibility criteria:?

• Business must be liable for UK corporation tax
• Business must be undergoing research and development that aims to overcome a technical uncertainty

While it’s easy to identify the eligibility of your business, figuring out whether or not a project is eligible for the relief can get a little tricky - especially considering the fact that HMRC have a specific definition of what research and development actually is.?

HMRC states that a research and development is a project that seeks to overcome a scientific or technological uncertainty that cannot be easily solved by an expert in the field.?

I've put together a checklist to help you understand whether your project qualifies for R&D tax credits...

• Is your project focused on science or technology?
• Does your project aim to produce a new or improved product, process, software or service?
• Is there a lack of solution or existing knowledge to the problem you're aiming to solve?
• Is a competent professional in the field unable to solve the problem?
• Is research and development necessary to solving the problem?

If you can confidently say yes to each of these questions, then your project likely qualifies for R&D tax credits!

Applying for R&D Tax Credits

While my checklist will help you to determine your basic eligibility, I still recommend that you work with an R&D tax credit specialist in order to verify your eligibility and to compile your claim.?

Why??

Well an R&D tax credit specialist has a professional working knowledge of HMRC policy, which provides them with the ability to identify qualifying activities and costs that often get missed!?

What’s more, is that a specialist team can assist you with your claim at every step of the process, helping you to gather the necessary information, write compliant technical reports, and even engage with HMRC on your behalf - allowing you to save time while receiving a cash injection into your business.?

So why wait? Click here to book an appointment with an R&D tax credit specialist, and you can save your time and your money with R&D tax credit relief.