Last week, Theresa May announced the government’s plans to invigorate research and development in UK companies by spending an extra £2 billion per year by 2020-2021 on R & D funding and grants.
Speaking at the CBI’s (Confederation for British Industry) Annual Conference, the Prime Minister announced the additional spending as part of the government’s plan to make the UK a “global go-to place for scientists, innovators and tech investors”
While it’s not immediately clear how this additional funding will affect the government’s current R & D tax credit policy, Downing Street’s own recent research has indicated that every £1 spent on R&D tax credits has stimulated between £1.53 and £2.35 of additional investment in the UK. This, together with the Prime Minister’s announcement, and the ongoing review into the Research and Development Expenditure Credit (RDEC) for non-SMEs bodes well for companies looking to claim back R & D tax credits in 2017 and beyond.
The government’s drive to incentivise R & D investment is in-line with UK companies’ apparent appetite for developing new technologies in order to gain a competitive edge. In a recent poll of 800 qualifying companies, 70% of companies that have carried out R & D activities in the past, intend to either maintain or increase their spending on R & D despite the recent uncertainty of Britain’s standing in a post-Brexit world.
Innovation Plus deals exclusively with R & D tax credit claims. We love to see innovative companies succeed and our fees are only taken from the tax credits we successfully claim. If you are thinking of claiming R & D tax credits in 2017 or would like to find out if your company qualifies, contact us by calling 020 3004 9243 or emailing firstname.lastname@example.org