The process of R&D, which includes technological advancements and improvements, involves finding new growth opportunities for your company. Today’s business environment is constantly changing, and these changes are a reality that companies need to implement advances into their overall business goals.
As well as gaining a competitive advantage from new or improved products, services, techniques, formulas and systems, companies also get a boost to cash flow from the government’s R&D tax credit programme, which rewards companies for their investment in innovation. There is also a whole host of wider benefits that can be enjoyed by taking the next step, which is why we are exploring how (and why) you should look to infuse R&D into your business culture to help your company thrive in the long term.
The Importance of R&D
Why is R&D in a company so important? Quite simply, it allows our wider economy to stay competitive. The world does not stand still, therefore, if companies do not conduct R&D activities it is more likely that they will get left behind.
When companies innovate and the economy does well, everyone benefits – through job creation, higher tax revenue, and exports. This is the government’s intention in incentivising R&D activities.
For those UK companies that are prepared to innovate, financial support is available in the form of R&D Tax Credits. As a form of government funding, R&D tax credits can transform your company.
RDP Associates (RDP) is passionate about helping companies realise the full potential of R&D tax credits to succeed in growth.
As such, R&D projects often boast a library of benefits for companies big and small – meaning fostering a culture of R&D within your company could (and likely will) pay dividends.
R&D tax credits are important to companies because they provide a vital cash injection based upon the amount of money spent on qualifying R&D activities. The R&D benefits can be in the range of 13p up to 33p for every pound spent. For example, if you have £100,000 in R&D expenditures and are a loss-making company, you would be able to receive a £33,000 cash benefit. The average claim we submit for our clients is approximately £80,000.
At RDP, we specialise in working with companies on how to improve R&D record-keeping in order to optimise claims. An important part of this is helping to make qualifying R&D visible within a company, regardless of how it is referred to internally. We find that actually advising and recognising which activities are considered eligible, plays an important role in the success of future R&D innovation.
It is important to have internal education around R&D and its value. When you choose RDP as your R&D tax credit adviser you get so much more than just a claims management service. We invest time and resources into helping you educate your team about what R&D actually is and its value to your company.
This enables everyone in your organisation to better recognise R&D and keep the appropriate records. The best time to identify R&D is at the outset of the project. With this understanding, your staff are well placed to identify R&D projects early and to keep all the records required to submit a full and robust claim.
The ideal scenario here is to create a culture of R&D. This allows you to take a strategic approach and better inform your decision-making as we explain below.
We see part of our wider mission as educating UK companies about R&D tax incentives. Visit our blog to see a variety of resources.
Get in touch with us today to learn more about how we can help at [email protected]