HM Revenue & Customs (HMRC) offers tax breaks for companies involved in R&D, as part of the government’s drive to encourage innovation and development of new products, processes and designs.
Small and medium-sized enterprises (SMEs) can claim tax relief of 175 per cent of the money they spend on R&D.
Where companies involved in R&D are not making a profit, they can take a tax credit instead equal to 24.5 per cent of the R&D costs.
Even where the company is undertaking grant-aided research, or if the R&D activities are sub-contracted out, R&D tax relief can be available.
However, Andrew Reid of Capitus said many companies do not know the tax relief is available, nor realise that what they do constitutes R&D for tax purposes.
‘Many companies perceive R&D as “men in white coats” involved in scientific or technological research,’ added Reid. ‘However, for tax purposes, R&D is any project that seeks to achieve an advance in overall knowledge or capability in the field of science or technology.
‘With such a broad definition, many companies have qualifying activities including software development, engineering design, development of new construction techniques, bio-energy, advances in agriculture and food production, as well as life and health sciences.’
Nanogenerator consumes CO2 to generate electricity
Nice to see my my views being backed up by no less a figure than Sabine Hossenfelder https://youtu.be/QoJzs4fA4fo