14.10.2020

There is a huge range of R&D tax incentives, grants and subsidies available to UK businesses, to help them accelerate innovation and business expansion. As a result, it can be tricky selecting the best option for your business.

Make UK’ s innovation funding partner ABGI UK, has provided us with a summary of available tax incentives, grants and subsidies, to help you find the right innovation funding solution for your business.

Sandy Findlay is ABGI’s key contact for the manufacturing sector in the UK. Sandy has 21 years' consulting experience in business strategy, marketing and international business. If you have any questions regarding any of the funding sources mentioned on this page, or require any further information, please email [email protected] or call him on 07807 739 033.

R&D Tax Credits

If your company carries out R&D on its products, processes or services, you may be able to take advantage of the UK Government’s R&D tax credit scheme. The scheme allows companies to claim tax relief on the money invested in qualifying R&D.

For profitable companies claiming under the SME scheme this could be up to 24.7% additional tax relief on qualifying expenditure. While loss making SMEs can surrender their losses and receive up to 33% cash payment.

Companies claiming under the RDEC scheme can receive up to 9.7% net benefit.

Patent Box

The Patent Box scheme allows your company to benefit from a corporation tax rate of 10% on all profits associated with the commercialisation of a patent granted by the intellectual property office in the UK or the European patent office. 

If your company has exclusive licences to third party patents, and has undertaken qualifying development, you can also benefit from the reduced corporation tax rate.
 

Capital allowances

The Patent Box scheme allows your company to benefit from a corporation tax rate of 10% on all profits associated with the commercialisation of a patent granted by the intellectual property office in the UK or the European patent office. 

If your company has exclusive licences to third party patents, and has undertaken qualifying development, you can also benefit from the reduced corporation tax rate.

 

Grant Funding

Innovate UK SMART grants

Innovate UK’s open grant programme is designed to fund ambitious, disruptive R&D projects with strong commercialisation potential in the UK and overseas.   Smart grants can support: Early stage feasibility studies. | Industrial research | Experimental development.

To lead a project your organisation must:
  • be a UK registered business of any size or a research and technology organisation (RTO)
  • carry out your research and development (R&D) project activity in the UK
  • intend to commercially exploit the project results from the UK
  • be, or collaborate with, at least one small or medium sized enterprise (SME)
Funding is available for projects durations between 6 and 36 months and eligible project costs between £25,000 and £2.0million

Applications are received as part of regular competitive rounds, the current round closes to applications on 25th November 2020.                                                              
 

ISCF Transforming Foundation Industries

The ISCF/Innovate UK programme will help the UK’s foundation industries to remain competitive and become more environmentally sustainable. Proposals must focus on resource or energy efficiency through

  • long-term viability of domestic supply chains
  • new markets
  • new business models
  • new products and services
  • new processes

Project should have eligible costs between £100,000 and £1.0million. 

Applications close 4th November 2020

Innovate UK Competitions

Innovate UK runs funding competitions that can help you develop your idea and make it successful. They are open to innovation projects led by a UK-based business or research and technology organisation, with funding awarded to the winner.

These competitions help to commercialise UK innovation and bridge the gap between the research lab and the marketplace.

For a full list of all Innovate UK competitions currently open, and to find out how to apply see here

 

Commercial Funding

Software intellectual property finance

An asset finance solution that uses the hidden value of a company’s unique software intellectual property (IP) as collateral for security. An innovative way of raising funding for a business with limited fixed assets and without sacrificing control of valuable intangible assets. 

Find out more: [email protected]

Recurring revenue lending

A finance solution allowing companies to turn regular contracted revenue in to working capital, by borrowing up to four times their monthly recurring revenue. Particularly useful for companies using subscription or annual contract business models.

Find out more: [email protected]

R&D tax credit cash advances

Short-term cashflow funding to bridge the gap between investing in R&D and receiving a tax credit. The cash advance is secured against a secured cash credit. As opposed to a tax relief. However, if a lender has an established relationship with a company the lender may be more flexible on the terms of the loan.

 
 

About ABGI

ABGI is a leading international tax incentive and innovation management advisor. We help companies accelerate their innovation activity by identifying and securing appropriate funding in the form of grants, tax incentives or commercial funding. 

With 30+ years heritage and 200 experts, we manage £1.6billion of innovation incentives annually across 19 countries, for some of the world's best-known brands. 

For further information on how ABGI can help you secure the right funding for your company’s innovation activity email [email protected] or call him on 07807 739033