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It has not escaped the notice of innovative businesses and the accountants that seek to help clients with R&D that funding for innovation is currently undergoing changes.
While some businesses will continue to benefit from increased investment, there are plenty of businesses that may be concerned that their funding could be limited in the future.
Knowing how R&D is being viewed publicly and politically might help accountants who want to continue supporting clients in accessing vital funds to seek new advances.
What do people think of R&D and why does it matter?
In times of economic and political instability, the perception of something is almost, if not more, important than its reality.
While those actively engaging in R&D are keenly aware of the ways that it will benefit the sector and wider society, this message may not be effectively communicated to the wider public.
It was determined by research from the Campaign for Science and Engineering (CaSE) that perceptions of R&D were having an impact on its future viability.
It was found that 51 per cent of people could not immediately think of any ways R&D benefits them or their family and that 74 per cent knew hardly anything or nothing about R&D in their local area.
When discussions are being had around the ways that the Government utilises its funds, public perception plays a pivotal role as committing to something popular is a way for politicians to keep their jobs regardless of the material reality of any given situation.
CaSE raises the issue that while a lack of connection to R&D may have shielded it from criticism or scepticism in the past, ongoing debates around the value of research and the increase of anti-intellectualism could see the tide turn.
It is the recommendation of CaSE that those working in and around the R&D space take more time to position R&D as a source of hope for the country and highlight the value of work undertaken in order to win back public support.
Does public support impact R&D tax relief claims?
Having spent years undergoing revisions to shake off the tarnished reputation of fraud and corruption, it would be disheartening for R&D tax reliefs to be impacted by sentiments of apathy or hostility from the public.
However, the recent repositioning of the UK Research and Innovation (UKRI) to prioritise some research over others in fund allocation is an indicator that perception could be influential in how R&D is funded going forward.
The pivot to focus on work done to address Government and societal priorities means that what was once a widely accessed pool of funding is more restrictive.
For the time being, there is no indication that R&D tax reliefs will follow suit, so they remain highly valuable, especially as other sources of funding contract.
What the consideration of public perception does highlight is the additional benefit that comes with engaging effectively with R&D tax relief claims.
If any accountant or innovative business wanted to extoll the virtues of the R&D they support or conduct, they would need to look no further than the technical narrative of the R&D tax relief claim.
This section is specifically designed to take innovation conducted by competent professionals and translate it into a way that is clear for non-experts to understand the value of the work done and the way that it advances the field of science and technology beyond the commercial benefit to an individual business.
With some adjustment to preserve trade secrets, work to compile this report could be used as the basis of a broader awareness campaign to highlight the value that R&D brings to the UK and how individuals benefit from it.
As R&D tax consultants, we know the value of R&D tax relief claims and are always keen to spread the message.
We support accountants to better help clients with R&D by highlighting the most effective ways to capture the full scope of qualifying activity and expenditure in an R&D project.
Our technical narratives help HMRC to understand even the most complex or niche pieces of research by demonstrating the value of the work.
We can also help you or your client to better understand the funding available and make the most of R&D tax relief claims so that further advances can be sought.
While we may not be able to convince the world of how valuable R&D truly is, we can support you and your clients in unlocking the full value of R&D tax relief claims.
Speak to our team if you want to discover the full benefits of R&D tax relief claims.
Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.
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