The UK will see its biggest ever increase in research and development (R&D) investment, the Prime Minister Theresa May has announced.
As part of the Industrial Strategy’s aim to improve productivity and create better and higher-paying jobs across the UK, the government will work with industry to boost spending on R&D to 2.4 per cent of GDP by 2027, which could increase public and private R&D investment by as much as £80 billion over the next 10 years.
According to the statement, the government will make an extra investment of £2.3 billion in 2021/22, raising total public investment in R&D to £12.5 billion that year alone.
Writing in the Times on Monday 20 November, the Prime Minister says: “Our industrial strategy will propel Britain to global leadership of the industries of the future, seizing the big opportunities of our time – from artificial intelligence and big data to clean energy and self-driving vehicles.”
The Business Secretary, Greg Clark adds: “Through our Industrial Strategy we are committed to building a knowledge and innovation-led economy and this increase in R&D investment, to 2.4 per cent of GDP, is a landmark moment for the country.
“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.”
At Beavis Morgan, we have made substantial successful claims for business 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 HMRC’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!