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For innovative businesses and the accountants that support them, it is important to seize opportunities as they arise.
With large sums of money involved, R&D tax relief claims are likely to play a major role in making the agreement successful.
What is the UK-Germany quantum agreement?
Quantum technology is believed to be a sector that is likely to see some significant growth in the next few years.
That is why, despite only £6 million being announced in joint funding, it is hoped that the sector will become worth £11 billion by 2045.
It is clear that there is a strong hope that the innovation achieved through the investment will yield a significant return on investment in much the same way that the R&D tax relief claim scheme has done.
The main focus of the agreement is on the development and creation of novel computers, sensors and navigation systems.
If you work with clients in these sectors, it may soon be necessary to assist them with their R&D tax relief claims to ensure that they can continue to keep pace with the expected advances.
Even beyond the original sectors targeted, R&D investment often yields exciting possibilities.
When a new technology is developed, it opens the door to more advances in different sectors.
Manufacturers may find that quantum computers solve a technological uncertainty that has been holding back attempts to be more efficient, or textile firms could find the key to developing more sustainable practices.
How will the agreement shape the future of R&D tax relief claims?
The spirit of cooperation is alive with the cross-border agreement and it could signal to the Government the additional benefits of R&D funding.
The Merged R&D scheme saw a contraction in the eligibility of overseas work conducted with only work that could not be completed in the UK remaining eligible.
It is unclear whether agreements like the UK-Germany arrangement could see some shifts in the guidelines to accommodate more international cooperation.
If any such shifts happen, it is likely to be conditional on specific agreements rather than the open-house style that it was before.
This will continue to centre R&D on UK-focused companies while leaving the door open to more international collaboration.
Whatever happens with the future of R&D, we will be on hand to support accountants and innovative businesses to ensure they make the most of it.
As R&D tax consultants, we want to see those eligible making the most of R&D tax relief claims and we are happy to improve access for novel advances.
For help and guidance in supporting your innovative clients in this exciting new chapter of R&D, speak to our team today!
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