An article from Stuart Wilkinson has stated the importance of innovation in the UK economy, but also the importance of incentives like R&D Tax Credits to encourage more companies to take the step into the unknown and think outside of the box, and ultimately be rewarded for doing so.
What are R&D Tax Credits?
For those who are unaware, R&D Tax Credits are available as part of an EU initiative to reward innovative businesses for their expenditure on qualifying research and development and encourage healthy growth in the way of new products and methods being created. The credits come as a cash sum which is often in the tens of thousands, with randdukltd.co.uk claiming hundreds of thousands for some companies, which represents anything up to a 225% return on expenditure. There is more information on the ins and outs of R&D Tax Credits on the HMRC Website.
R&D Tax Credits – The bigger picture
This article stresses the need for UK businesses to not only embrace Research and Development as a growth strategy, but also to be completely sure of the incentives and tax grants available to them, even citing R&D Tax Relief explicitly in his article. In a sentiment that echoes that of our very own Brendan Molloy, too many businesses are completely unaware of their entitlements. He also stated that initiatives such as R&D Tax Credits will ultimately aid the UK economy by helping and encouraging businesses to develop new technologies, products and services.
He also states that in April, the R&D Tax Incentive will be made more attractive to loss-making companies in the UK, with the offer of cash repayments for their outgoings, which is good news, as almost all R&D represents a financial risk to participating businesses and this should be reflected in any tax credits.