The UK leads the way in many of the technological industries as the world develops solutions to longstanding problems. Science and technology are just two of the areas of innovation that are being explored across the UK and specifically in the North East of England.
Providing medical advances in terms of new medicines or technological solutions to help people live longer and healthier lives have become more commonplace. The NHS and private providers are always developing new ways to support people to live the fullest life possible in the face of whatever disease, illness or injury they face. It is by advancing our knowledge that we are able to assist people to be people and not patients. That is hugely important in their lives.
As the government looks to strengthen the UK economy with Brexit appearing closer than ever on the horizon, one of the tools they have employed is R&D tax credits. Incentivising business to invest in research and development helps SME’s to make investments where in the past they may have shied away. There are innovators out there in the healthcare sector that connect a constant in our lives such as the smartphone with the medical care and attention people need at important times. Having blood pressure or blood sugar levels monitored remotely is one application currently being used across the country to save the precious resources we have in hospitals and other healthcare centres.
The finance to support his activity
Of course, all of this innovation costs money. Ploughing cash into new products or technology is a commercial risk that small and medium businesses are not always in a position to take. There are many ways in which a project can ‘go wrong’ and put a large hole in the balance sheet. Playing it safe can feel like the best option. And that is why R&D tax credits have been developed, refined and promoted by HMRC on behalf of the government. They are an incentive for businesses to take these risks. The idea behind it is that we become more competitive as a nation on the world stage. But there are other benefits to this approach.
As we spend more on research and development, safe in the knowledge that there is support from the government, then we deepen our knowledge. The more we know about whether a piece of technology or new drug can actually help people, the closer we come to the cure, or at least making their life easier. With ideas and testing comes results. There are some rigorous hurdles to climb when bringing a new medical solution into the UK market (quite rightly too) and this means a long lead time from idea to market. Having the support of the government through R&D tax credits helps SME’s in particular to absorb this lead time.
And how does the government support this?
R&D tax credits are the system the UK government uses to reward businesses that take a commercial risk in order to advance their knowledge. This isn’t as complicated as it sounds. And it isn’t just for life science or medical businesses.
You make an application to HMRC based on:
-Advancement in your field of work
-The uncertainties you face
-How those uncertainties were overcome
This doesn’t have to be something that is manufactured, as changes to processes or procedures can also be eligible for R&D tax credits. Indeed, some software projects also make qualifying claims, so you should understand R&D tax as an important part of your business planning.
Brexit will change the way we do business in many ways that haven’t come to light just yet. But at the heart of a growing company is research and development to expand and stay fresh. When HMRC is rewarding UK businesses for making these investments it would be silly to miss out on the cash available. With claims on behalf of our clients averaging over £35k there is a lot to gain from a R&D tax application. In addition, there isn’t a whole lot to lose. We offer a free, no obligation consultation to see where the R&D tax claims are in your business.
