Posts Tagged ‘Research and Development’

Grant Support for Research and Development in Wales

Posted on: July 31st, 2012 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

Grant support is available from the Welsh Government in order to encourage companies to undertake Research and Development activities in Wales.

The funding is aimed at supporting SME’s although non SME’s can potentially access support on an exceptional basis.

The funding is available throughout Wales and is not restricted to Grant Assisted Areas.

Grant support can be provided through the following schemes:

1. Innovation Vouchers – Innovation vouchers are available to support R&D activities undertaken up to a maximum of £10,000 and 50% of eligible project costs per innovation voucher. An applicant company can apply for 2 innovation vouchers in any 12 month period. Eligible costs are limited to the costs of using external suppliers to undertake the work.

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Encouraging innovation through the tax system

Posted on: July 20th, 2012 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Since the Research & Development (“R&D”) tax relief scheme was introduced in 2000 it has undergone many changes.  However, the underlying theme of these changes remains the same – to encourage innovation.  To achieve this objective, increasing the generosity of the R&D scheme has been considered vital.

An SME (a small & medium sized enterprise – generally a company with less than 500 employees) can now claim tax relief equivalent to 225% of the amount it spends on R&D.  For example, if a company spends £100,000 it can claim tax relief of £225,000, thereby potentially reducing its tax liability by an additional £30,000.

In addition, a loss making SME has the option to claim a tax free cash sum from HMRC.  This cash option has, for years, provided an invaluable source of funding, with approximately 25p in the pound potentially claimable (i.e. up to £25,000 of actual tax free cash could be claimed for an R&D spend of £100,000).

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