The International Monetary Fund (IMF) has warned that the UK must increase productivity and focus on international competitiveness to weather Brexit.
In its latest report, published this week, the IMF says the slowdown in economic growth in recent months can be partly attributed to Brexit, with sharp depreciation of the pound following the referendum in June 2016 leading to higher prices which has, in turn, impacted household budgets. There has also been increased reluctance from firms to invest, as they await more details about the future relationship between the UK and the EU.
“In this situation, it will be even more important for the UK to raise productivity and balance its public finances,” the IMF said in its report.
When commenting on ways in which the UK can support productivity and increase competitiveness, the IMF cites ‘investment in research’ as a key driver: “Public and private spending on research and development (R&D) in the UK is relatively low. Increasing such investments would make local companies better able to compete internationally.”
In confirming the government’s commitment to supporting R&D, Business Secretary Greg Clark recently said: “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!