Having a vision for Research and Development

1. Having a vision for Research and Development An ancient book once said, 'Without vision the people perish'. The same can be said for research and development because it is all about vision. It is all about looking ahead and realising the potential of a product line, a service or company advancement. Without it a company can lose its standing in the marketplace. Without it jobs could be lost. Without research and development there is no growth, no ambition. Any type of research and development takes investment, both in time and money and with any investment there are risks. R&D may induce costs for more staff, including any form of subcontracting, software and machinery, materials and consumables, and clinical trials. Companies striving to be more innovative and cost productive have to weigh up these costs and determine the value of thorough research and development. It helps then that the UK government has a scheme that can offset some of the financial risks involved in R&D. These come through research and development tax credits and have been put in place to specifically help companies grow through innovation by providing tax credits either through tax relief or cash incentives. Qualification To qualify a company has to be UK registered, be subject to corporation tax and must be involved in some form of research and development in qualifying services and products even if, at the time of applying, the R&D has been aborted. There must also be evidence of financial costs involved in the research and development. What type of services and products can apply? It has been purposefully designed to be a fairly broad spectrum and includes, but is not limited to,

2. areas involving construction, pharmaceutical (including any clinical trials), processing of chemicals and chemical products, software technology and development, and environmental & recycling industries. Any company or industry that is seeking to streamline techniques and processes, to improve products or services or are developing new products or services are eligible to apply for research and development tax credits as long as they fall into the qualification criteria. Two possible paths to research and development tax credits and relief Depending on the company or industry there are two possible routes to take with tax relief or credits for R&D. •SME (Small or Medium sized Enterprise) - as the name suggests this tax incentive is aimed at companies with a workforce of less than 500. Start ups are the main focus of this route though existing companies are also welcome to apply. The company must not have a turnover that exceeds 100m euro and have no more than 86m euro in assets. Research and development tax credits are around the 25% mark but if the company is making a loss then cash credits of around 33% can be claimed for. •RDEC (Research and Development Expenditure Credit) - this path is aimed at larger, more established companies whose turnover and gross assets exceed the 100m and 86m euro respectively. RDEC allows for research and development tax credits of around 12%. How to apply for research and development tax credits Given that is a wide spectrum and often a complicated area in which to claim tax relief, it is not task that can be done without specialist help. There are many companies specialising in this field of research and development tax credits. They have the expert knowledge and understanding to tackle the minefields when it comes to filling out forms and applications. These specialists will take the weight off the process allowing the company committed to research and development to focus on what they do best. It is always advisable to use these specialist companies rather than apply direct. Do you want to grow and be innovative? Most, if not all, companies would welcome any help in growing their business. Government tax incentives and relief are one way in which companies can grow especially in the area of R&D. It would be foolish of any company not to take advantage of a scheme that assists in their own research and development. Providing they fit the criteria, are committed to R&D and seek the correct path, they stand to gain. This helps not only the business but the wider marketplace as innovation moves industry forward. A company needs vision, a clear idea of where it needs to go. Research and Development is the vehicle the drives innovation and vision. Research and development tax credits are the supplemental fuel that get your company where you want to go. Source:- https://uberant.com/article/935106-having-a-vision-for-research-and-development/