The UK government is reviewing the funding organisations it utilises to fund research and development (R&D).
It has proposed legislation to establish a “blue-sky” scientific research institution that will spend taxpayer funds on cutting-edge technology like artificial intelligence.
The “Advanced Research and Invention Agency,” as it will be known, will be allocated an £800 million budget over four years. The government has stated that it intends to increase public R&D spending to £22 billion per year.
‘This strategy is an important step in ensuring innovation plays its full part in driving economic recovery and addressing the biggest challenges facing society, such as decarbonisation, levelling up, and health,’ Felicity Burch, Director of Innovation at the Confederation of British Industry (CBI), said of the new approach.
‘We are pleased to see the scale of ambition and the focus on unleashing business innovation and investment. The commitment to increasing investment to £22 billion for R&D provides an important signal to business ahead of the spending review that this government will work with business to deliver on the ambition set out in this strategy.’
Research & Development (R&D) tax relief is one of the UK’s most generous schemes, but it is significantly under-claimed, with most businesses assuming their activity won’t qualify.
For many, this is simply not the case. If you are making an appreciable improvement to an existing product, material, service, device or process, you may qualify. An improvement could be making something cheaper, lighter, faster, more economical or more efficient, and often this activity is the result of a customer request.
SME businesses can claim up to 33p for every £1 spent on qualifying activity, even if they are loss-making and have paid no corporation tax.
In the past 12 months we have helped our clients to save over £4.4 million in tax through the R&D Tax relief for UK businesses.
A quick two-minute chat is all it takes to find out if you qualify for this generous tax relief.
Get in touch with our team to see how we can help you