Other Government Funding
Applying for Government Grants Should Be Part of Your Business Strategy
Government grants can reduce the upfront cost of your innovation projects by 50% or more. With British companies now having access to potential funding of £5,000 to £1,000,000 (annually) for a wide range of business development activities and industry-specific innovation projects, new emphasis is being placed on applying for government grants.
RDP offers a free consultation to determine your company’s eligibility for government assistance.
Let RDP’s experienced research tax credit consultants assist you in obtaining the maximum amount of government grants available for your company’s business development activities.
Which Business Areas Are Funded by Government Grants?
Currently, government grant programmes for businesses can be classified into 5 categories:
Funding for the research, development and commercialisation of new products, processes or services.
Marketing and exporting
Support for marketing and promotional activities or the formation of direct business contacts to increase the sales of UK-made goods and services, with emphasis on international marketing.
Human resources and training
The hiring and training of skilled young personnel in technical or entry-level positions, including full-time, internship or apprenticeship positions.
Funding to support the development of energy-efficient technology or clean fuels, or incentives for the implementation of these technologies to reduce energy consumption and emissions.
Purchase of new capital equipment or construction of new production capacity to increase productivity.
Since programmes will not cover any expenses incurred before an application is approved (and may even cancel a contract if work is started early), we always advise our clients to be proactive in their approach. RDP’s qualified and experienced team includes staff that has previously worked for the government funding programmes themselves. We can assist you in ensuring your claims stand up to HMRC scrutiny and derive the maximum benefits.
For common government grants questions answered, check our UK Government Grants FAQ page here.
Lower Your Corporation Tax with the Patent Box
The Patent Box tax regime enables a company to apply a lower rate of corporation tax to profits earned from its patented inventions. Once fully implemented in 2017, the tax rate will be 10% (against a general rate of 20%).
The following are key conditions that must be met for a company to qualify:
- The patent must be fully granted at the time of the claim by the UK Intellectual Property Office, the European Patent Office or certain other European countries. (If profits are made during a patent-pending period, there is a catch-up adjustment to include these profits at the date of the grant.)
- The company must either own or exclusively licence the patent.
- The company must have undertaken “qualifying” development by making a significant contribution to the creation or development of the patented invention or a product incorporating the patented invention.
- Sources of income that can be claimed on this include:
- Income from the sale of a patented item, (or an item incorporating a patented item)
- Licence & royalty income
- Proceeds from the sale of the patent
- Damages received from the infringement of the patent
RDP’s Patent Box team is available to explain the rules in detail. Our government grants accounting specialists will also help you put a system in place to identify relevant streams of income and assist with the calculations to quantify Patent Box ”profits”. This will ensure that maximum benefits are derived under the scheme.
Other Business Tax Credits in the UKThe UK government offers many other tax credits to stimulate economic investment in certain sectors. RDP has outlined two relatively recent tax credits for the creative industry that are often overlooked.
Video Games Tax Credit
Targeted at companies responsible for video game design, production and testing, this R&D tax credit aims to prevent jobs from leaving the UK. All game formats can potentially qualify for this tax relief including those that are downloaded onto smart phones/tablets as well as the traditional boxed games.
Theatre Tax Credit
This latest tax credit for the creative industry supports companies actively involved in theatre productions in the UK. To qualify, companies must make an effective creative, technical and artistic contribution to the venture including directly negotiating, contracting and paying for rights, goods and services in relation to the production.
Contact Us to schedule an appointment for a Free Assessment.
Contact us to schedule an appointment for a Free Assessment. We can help determine your eligibility for tax credits and grants and share more information about innovation funding.Contact Us