With 2021 proving to be a difficult year for UK businesses so far, it is more important than ever for business owners to consider the financial aids that are available to them. Understanding what incentives and grants you can qualify for can help you stay afloat during these turbulent times, and can allow you to fund your innovations, allowing you to stay ahead of the competition.
The good news is, the UK has shown a dedication to rewarding innovative companies over recent years. During the PMQs on 10th February, the PM confirmed the Government’s commitment to R&D by his response to a question raised by Plaid Cymru MP Liz Savile-Roberts. Boris Johnson said in his reply “Wales is at the cutting edge of technology under this Government’s plans for record spending on R&D—£22 billion by the end of this Parliament—and Wales, along with the whole of the rest of the UK, will benefit massively.”
One way in which innovative companies can be rewarded is through R&D tax credits. The scheme works by allowing businesses to reclaim up to 33% of their expenditure on R&D. The claim is calculated based on the overhead costs associated with eligible R&D activities such as utilities and staff wages. If you are a business that strives to improve its products, process and services or creates new ones, you could be entitled to a cash windfall from HRMC. Eligible R&D projects typically include trial and error, industry firsts, trialling new or substituting materials, creating bespoke solutions and many more.
Have a read of some of our latest success stories- if your company does something similar you could qualify for a cash injection too.
A recent claim of £143.3K is awarded to Nottinghamshire based business, making their total claim £718.9K
Based in Nottinghamshire this business provides expertise to manufacturing and process industries in the fields of mechanical handling, process control, steelwork fabrication, metal recycling and material separation techniques. The company are developing separation techniques that will significantly slash landfill quantities. Most of their developments engineered by them are bespoke items that require significant levels of engineering concepts and skills that align to develop state of the art machines. There is a culture of innovation at the business and they have invested in capital equipment to carry out many projects that require R&D. These projects have included trials, prototypes and problem solving to create technological breakthroughs.
HMRC awards £6.4K to firm for R&D, making their total claim £53.5K
This company is dedicated to promoting best practice in sourcing, manufacturing, branding and distribution of promotional products and clothing. A trade body by nature, the company offers its members a competitive advantage through its education and engagement programmes, showing a dedication to providing first-class education opportunities. The business innovates by constantly evaluating different methods of education delivery including online learning, classroom learning, on the job experiences and many more. It’s educational platform is regularly reviewed with an aim of improving the learning experience. Their R&D includes redesigning software versions in order to meet the technical demands of projects.
Aviation business is awarded £89.4K bringing their claim total to £246.6K
This firm is based in Bedfordshire and supplies refuelling equipment internationally to major oil company users in the form of new and used refuelling vehicles. They carry out installation works at airports in the form of storage tank supply, refuelling packages, modifications or upgrades of existing facilities and much more. Their team has sound engineering experience that has developed unique products to improve the quality, efficiency, and safety of the complete fuel supply chain in the aviation industry, covering the whole spectrum of fuelling aircraft varying in size from single-seaters to commercial jetliners. They continually strive to improve their client offerings and aim to innovate equipment such as refuelling vehicles, and ground supply equipment as well as offering a growing range of services including site surveys, training, quality control and many more. They continually invest in machinery and new processes and use R&D to stay competitive. Labour saving, fuel quality control, recovery and recycling of fuels as well as improvements in the ergonomics and health and safety are all included in their projects.
First claim worth £39.6K is awarded to construction business
This business started in the area of social housing, specialising in the repair and maintenance of contracts in the Derbyshire region. As the firm grew, they branched out to new home development for social and private clients with one-off build projects and management. It now has offices across the Midlands and North East. They manage a large mobile workforce of hundreds of engineers and skilled craftsmen who attend different construction and maintenance projects daily. They are a leading contractor for public and private sector construction projects. To maintain profitability and competitiveness they have developed a custom platform to help manage their mobile staff more effectively, which required R&D.
Latest claim worth £151.6K is given to engineering firm, bringing their total claim to date to £905.5K
This engineering company has state-of-the-art machinery and a skilled workforce that work with a wide range of materials. They specialise in precision machined components, precision fabrications, prototypes as well as other areas. They supply to many UK leading sectors such as the automotive industry and their expertise enables them to respond quickly to customer needs. They undertake complex technical work, continually advancing the boundaries of what is possible with processes and technologies. They have invested in the most advanced hardware and software systems to further their R&D.
First claim worth £46K is given to construction business
This company are leading specialists in solutions for external building envelopes. Since the Grenfell tower incident, there has been a huge change to the approach of external cladding in multiple occupancy buildings regarding their safety and solutions to the removal and replacement of cladding. Their skilled engineers take on the full design, development and installation of projects. They constantly innovate to improve safety and their R&D has included trials, prototypes, and problem-solving.
Latest claim for Chesterfield firm worth £39K makes their total claim value £165K
This chesterfield based firm is a major turnkey company covering an ever-expanding area across the UK. They have recently become an industry leader in redeveloping automotive wheels. Their workshop is fully equipped to enable them to keep up to date with the latest technologies. Their expertise in tram wheels and knowledge has led to them making cutting-edge developments in this niche market.
First claim worth £6.5K is awarded to food company
This firm is a manufacturer of sauces, dressings, dips, sweet sauces, and dry mixes, and offers customers bespoke product development. Their customers include many food manufacturers such as bakeries, butchers, education suppliers and many more. Their customers expect them to devise innovative solutions to meet the market need when customers cannot do it in house. Therefore, many of their projects create bespoke formulations for the food industry, trialling new ingredients to make things tastier, healthier or more environmentally friendly.
Could you be eligible for an R&D Tax Credits claim?
During these turbulent economic times, businesses across the country are looking for solutions to their cash flow problems. Many companies are looking for grants and loans and overlook that fact they could be eligible for R&D Tax Credits. By successfully claiming R&D Tax Credits, your company could receive a cash injection from HMRC in as little as four weeks.
Call our experts today on 01332 477 070 for a free, no obligation eligibility consultation. Your business could be our next success story!