How Innovation Incentives Can Be Used Throughout a Project
This blog is written to show the benefits of the combination of patents, grant funding, and R&D tax credits, getting the most out of the innovation incentives the government, and Inovasi, offer. To learn more about how Inovasi can help with any of these incentives, please don't hesitate to get in touch.
Grants are where money is given to a company, with no need for the company to pay the money back, by the government for new projects and ideas, usually falling within a given scope. This is often the basis of a new project, unless funding was found from other sources, or it is a self-funded project.
Once the project is funded, it will go to the development stage, unless it was already there. The project then begins its research and development. For more information on grants, see here.
R&D Tax Relief
Research and development costs can be mitigated by R&D tax credits. At the end of the tax year, R&D tax credits can be claimed to get up to 33.3% back on qualifying research and development costs. These costs include, but are not limited to: employee wages, material costs, and prototypes. These credits can be claimed regardless of whether a project was funded by a grant or not. For more information on R&D tax credits, see here.
Patents and other intellectual property can be used to protect the project once enough information is known about it. While unregistered designs and copyright don't need to be applied for, applying for patents the moment that you can is important. Once a patent has been created and fully accepted, any profits made through selling the final product will have reduced corporation tax. For more information on the Patent Box scheme, see here.
Combining the Incentives
These incentives can all be combines together, with grant money spent on R&D being relieved by R&D tax relief, and grants often being able to pay for a patent to be applied for. With the vast majority of projects at least one of these incentives can apply, and often more than one. It is worth mentioning that all three can be applied for for maximum benefit.
These incentives can be a massive boost to the economy of your business, often giving the capital to continue with or even begin a project. Inovasi recommend that applications for as many as applicable are made, as many companies offer some of these services on a no-win-no-fee basis.
There are many ways to combine the incentives together, and experts such as Inovasi can help with any and all of these incentives, as well as show you the most efficient way to work with them all. We have worked with several companies to work through multiple incentives, from getting them a grant through to patents.
Inovasi helps companies to innovate with innovation incentives: R&D, Tax Credits, The Patent Box Scheme, and Funding. Inovasi aims to save you time, so you can focus on the core of your business, we offer expert advice, you can rest easy knowing your claim has been strictly adhered to HMRC legislation, reducing the chance of an inquiry, maximise all aspects of your innovation process, experienced, up to date on the latest guidance and changes related to R&D.
For this reason, we would suggest using an R&D specialist. At Inovasi, we take the time to understand you and your business, taking all the heavy work away from you, and we can ensure a robust and compliant report will be sent to HMRC to support your claim. In the unlikely event of a random inquiry, we will act on your behalf and show to HMRC how the project and costs associated are indeed qualifying. A technical advisor can help you figure out what is and isn’t R&D under the scheme.