The value of R&D tax credits for UK SMEs – what would you do with the money?
Discover what ABGI's clients did with the R&D tax relief benefit they received from the government and how they were able to invest back into their business.
20 January 2023
In recent years, the connection between innovation and increased competitiveness has become rather obvious. It’s encouraging business owners across the UK to invest their own resources, time and cash into innovation projects.
Not only can their investment help them stay ahead of the competition – it also provides opportunities for considerable financial returns through R&D tax relief or cash credits.
R&D tax relief works by ‘enhancing’ any eligible expenditure incurred in undertaking an innovative project. The enhanced expenditure can then be deducted from the company’s operating profit before tax, reducing their tax bill. Even businesses who find themselves in a loss-making position can claim a cash credit from HMRC.
The money received from these incentives can be reinvested back into any aspect of the business – on-going research and development, new staff, training or plant & equipment – creating a virtuous cycle of investment, innovation and growth that provides multiple benefits for all involved.
We asked some of our clients to share practical examples of what they did with the R&D tax relief benefit they received from the government, read the full article here to find out more.
Analysis originally posted on Zenoot.