The Autumn Budget set out a long-term vision for an economy that is “fit for the future” – one that gives the next generation more opportunities. It is an economy driven by innovation that will see the UK becoming a world leader in new and emerging technologies, creating better paid and highly skilled jobs.
To achieve this vision, the government has already set out a plan to boost UK productivity over the long term. As part of this, the government has committed to a £2.3 billion boost to UK research and development (R&D) spending by 2022, a move which is welcome news for UK business. This is the biggest increase in R&D spending by any government in the last 40 years.
What’s more, in the Budget it was announced that the the R&D expenditure credit would increase from 11 to 12 per cent with effect from 1 January 2018, demonstrating clear progress towards the government’s ambition to raise the level of investment in R&D in the economy to 2.4 per cent of GDP. This means that, based on current forecasts, total support for R&D will increase a third by 2021-22.
To provide businesses with the confidence to make R&D investment decisions, the government will also introduce a new Advanced Clearance Service for R&D expenditure credit claims. The government is also encouraging the best and the brightest international scientific and research talent to work in the UK, by changing immigration rules and cutting red tape in hiring international researchers and members of established research teams.
“The UK is a world leader in science and innovation. By delivering this significant increase as part of our Industrial Strategy, we are building on our strengths and working with business to ensure that UK scientists and researchers continue to push the boundaries of innovation,” says Business Secretary, Greg Clark.
At Beavis Morgan, we have made substantial successful claims for businesses across a range of sectors and we are working with SMEs to reward innovation, even helping owner managers claim Patent Box.
There are a number of ways in which companies can maximise the value of the government’s R&D tax credit scheme. Items that can be included in a claim include salary costs, subcontracting expenses, external testing, software licensing, consumable materials and some utility costs, although “extras” can be found in the form of claims in areas such as third-party IP.
Speak to us today to find out more about claiming money back for investing in innovation through R&D tax credits for SMEs – but remember the two year time limit!