UK Government business support and incentives have become more important than ever to transition the potential impacts of COVID-19 and Brexit in 2021 and beyond.
The government’s commitment to become a ‘science superpower’ will require increased investment in Research and Development (R&D) with the government’s long-term industrial strategy aiming to raise R&D investment to 2.4% of GDP by 2027.
Alongside our scientists, Britain’s booming tech industry has given the country potential to dominate and grow in IT and many other sectors, such as supporting manufacturing and our world leading financial services sector. Brexit marks only the beginning of fierce rivalry and competition for businesses, with most EU countries using tax rates and incentives to lure companies and investment.
As well as competition, international collaboration will play a key part in driving UK innovation and our economy. We have welcomed the news that the withdrawal agreement has allowed for the continued participation and funding for UK businesses in EU research programmes.
R&D Tax Relief is a crucial initiative in establishing the UK as a creative, technical and scientific force. The government aims to double public spending on R&D to £18 billion a year within the next five years. Continuing and improving the financial incentives for businesses to spend time on R&D will ensure that the country continues to be at the forefront of innovation.
Introduced in 2000, the R&D Tax Relief scheme allows companies to reduce their corporation tax bill or receive a payable credit of up to 33% of their R&D expenditure. This can be applied from your previous two financial years and used by both profitable and loss-making companies
Many companies do not realise that the government actively encourages and relies on companies utilising the R&D Tax Relief scheme to help stimulate the UK economy. In the past year, we have seen many companies capitalise on the scheme for the first time, joining the tens of thousands of others for whom it has been an extremely valuable annual initiative.
At Beavis Morgan, we have successfully claimed over £10million in R&D tax relief for our clients; funding which has supported them through the volatility of 2020 and helped to accelerate projects and facilitate growth.
We look forward to welcoming and supporting businesses that are both new to the scheme or looking for specialist expertise to enhance the value and efficiency of their claim. Our team of technical specialists and tax professionals are dedicated to helping companies secure their government money back for innovation, enabling them to continue to develop and enhance their products and services and achieve sustainable success.
For further information on the R&D Tax Relief scheme and to discuss your eligibility, please get in touch with Rebecca Heap via email Rebecca.email@example.com or a member of our specialist R&D Tax Relief team.