Benefit from R&D Tax Credits on innovative ideas

When asked about modernising or developing new projects, many business owners would say that they are too busy to think about it. Wouldn’t it be great to break this cycle? Well the Government thinks so. Many businesses work very hard to stand still, defending their profit margins selling the same products, produced in the same way, to the same customers. Their time often gets taken up with internal issues caused by inefficiencies.

Innovation is vitally important to the health of the UK economy and there is significant support available to help local companies modernise and develop new products.

Innovation is seen by Government as being an important catalyst to solve the ongoing productivity crisis. The theory is that if businesses embrace new technology, productivity will increase.

Based upon much economic research, Government tax and other business policies are predicated on the principle that an economy full of innovative companies will yield higher profits and therefore tax receipts as well as higher value jobs.

I am not suggesting that every business needs to embark upon a transformation or diversification project but many could benefit from being more productive or extending their product range.

We certainly see this with the businesses that we deal with at Shorts. Many profitable clients that we envisage being sold for high values have taken the plunge and modernised or developed new products.

What assistance can businesses obtain then, if they want to innovate?

R&D tax credits and Patent Box tax relief give innovative companies significant tax savings. Our Innovation Taxes Group has helped hundreds of local companies claim many millions of pounds of tax savings.

There are various grants available for innovation projects such as internal digital/IT projects to improve business performance or other innovation projects leading to job creation.

There are healthy local ecosystems around advanced manufacturing and the digital/tech sector that can easily be tapped into for support and collaboration.

We have great Universities in the region who can offer assistance.

The Northern Powerhouse Investment Fund has significant funds available which means that companies with bright prospects are well placed to attract investment from this source, or other funding options such as crowdfunding.

The local environment is good for businesses willing to have a go. From start-ups launching disruptive products to established businesses changing established methodologies, the opportunities are great for innovators.

Our Innovation Taxes Group are on hand to answer any questions you may have regarding the tax benefits available to those with innovative business ideas. Please contact us to arrange your free consultation.