Are You A Growing Business? Get Money From The Government To Help With The Costs

Innovation takes place when a company creates a new product, process or service (or updates an existing one) that then has a positive effect on their business. The ultimate goal is to reinvigorate an organisation, introduce a culture of innovation and boost its productivity.

Why does innovation matter in business?

Businesses need to be innovative for one simple reason, and that’s value. So that companies can thrive, it’s vital that they constantly improve and innovate. Successful innovation involves optimising existing channels, hunting out new sources of revenue and ultimately increasing profits. It will also hopefully offer businesses an advantage against their competition.

But why would the government care if a business grows or not?

A growing business is a thriving one. It’s a business that has plans for the future and the ambition to succeed - but it can’t do this without people.

Growth requires expansion, which in turn means taking on more staff. This could be in the form of full time employees, part-time or occasional staff, contractors, subcontractors or freelancers; everyone has their part to play. This extra staffing means more people are employed, more job roles will become available - and of course the knock-on effect is more tax-take for the government. Additionally, more people in work means less reliance on the welfare state (or so the thinking goes) and will hopefully make the UK more dynamic, profitable and able to hold its own on the world stage.

So what are the main tax reliefs available for innovative companies?

Despite the fact that growth and innovation are highly beneficial, not just for the company itself but the wider economy, it’s no secret that innovative work can also be expensive. The government recognises this, so has offered a number of tax incentives to help UK companies meet innovation costs. The three main ones are R&D Tax Credits, R&D Grants and Video Games Tax Relief (VGTR). Here we will take a look at them.

R&D Tax Credits

R&D (Research & Development) tax relief is an incentive offered by the government to UK limited companies to encourage growth and investment. The scheme serves to reduce the Corporation Tax bills that eligible companies must pay, or they can receive the credit in cash if the company isn’t profitable.

What defines R&D work for the purposes of the relief is deliberately broad. The relief is ultimately aimed at problem solving companies - those that can show they’re overcoming scientific or technological uncertainties or making ‘appreciable improvements’. If a business is bringing new products and services to market, improving existing ones, solving a particular customer problem or increasing efficiency, there’s a good chance it could qualify for the relief.

At the moment, R&D Tax Credits are one of the most popular and lucrative forms of tax relief on offer to SMEs, giving a 130% uplift on eligible expenditure.

How to make a claim for R&D Tax Credits

R&D Tax Credits can offer a funding lifeline to companies, either by providing a tax reduction or through cash reimbursement. It can literally be worth thousands - up to 33.35% of a company’s R&D costs - which is an awful lot to miss out on.

Looking to find out if your company qualifies, and how to claim? Find out much more on our R&D Tax Credits page.

R&D Grants

The government provides a range of R&D grants and support via Innovate UK. Funding is obtained by entering a competition, and new funding competitions are announced regularly. These include:

  • Projects that look to tackle one of several key 'challenges' identified in the government's industrial strategy. These are issues like better battery technologies, healthy aging and new types of creative content, like virtual reality for example
  • An 'open' programme for funding innovation in any sector
  • Assisting government organisations to realise their own innovative potential

Innovate UK also offers funding for schemes including Knowledge Transfer Partnerships that help companies collaborate with educational institutions.

Amounts offered vary and competition is fierce so it’s vital you make the very highest quality application possible. This is where we come in, as we have years of experience in this area and can guide you through the process to give the best chance of success.

Search for current innovation funding competitions or find out more on our R&D Grants page.

Video Games Tax Relief (VGTR)

The VGTR is a highly prized incentive that means companies involved in the design, development and manufacture of films and video games can receive help towards the cost. It’s offered by the UK government as a tax relief or a cash payment.

How much is VGTR worth?

VGTR is offered for video games that are entirely developed in the UK or the European Economic Area (EEA). It’s worth 20% of applicable spend. Applicable spend basically refers to money spent out on creating, developing and testing the game (including other post-release spending). However it excludes any maintenance, debugging or tweaking costs as well as the initial expenditure involved in designing the concept initially. As a simplified example, if a game has an eligible spend of £1m which was spent entirely in the EEA, the relief will be worth £200,000 (20% of £1m).

Different rules will apply if any part of the video game is developed outside the UK or EEA. This is a more complex area so we’ll be happy to go through this with you if required.

Find out more on our VGTR page.

How Tax Cloud UK can help

Tax Cloud UK is a cutting-edge, effective online portal designed to take the pain out of claiming R&D tax relief. Developed by the expert R&D tax team at Myriad Associates, there are separate sections for both businesses and accountants where your own figures can be added to easily see what you could claim.

Tax Cloud are specialists in all aspects of R&D tax relief assistance for UK companies. Made up of skilled accountants and tax experts, we have a proven track record in making successful R&D Tax Credit claims so you can rest assured you won’t miss out. If you think you may be eligible, contact us today on 0207 118 6045 or use our contact page. You could well be surprised at what you can claim.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
Latest posts
2ND APRIL, 2020 Imagine What £65,000 Could Do For Your Innovative Company - Think R&D Tax Credits
24TH MARCH, 2020 What Is Entrepreneurs Relief?
17TH MARCH, 2020 How R&D Across The World Is Helping To Fight Coronavirus
11TH MARCH, 2020 Top 10 Reasons Why Your Business Should Invest In Social Media
3RD MARCH, 2020 Top 5 Easy Ways To Speed Up An R&D Tax Relief Claim
25TH FEBRUARY, 2020 How Does Using Tax Cloud Compare To Making A DIY Claim For R&D Tax Credits?
18TH FEBRUARY, 2020 Latest Statistics Around R&D Spending In The UK Since 2017
11TH FEBRUARY, 2020 Easy Mistakes That Accountancy Firms Make Regarding R&D Tax Credits
4TH FEBRUARY, 2020 Tax Cloud Announces New Reduced Pricing
27TH JANUARY, 2020 5 Ways Charities Are Using R&D Advances In Virtual Reality
21ST JANUARY, 2020 Soft Drinks Sector - What Are The R&D Challenges?
15TH JANUARY, 2020 Science Fact: R&D and Eco-Robots
3RD JANUARY, 2020 5 New & Innovative Technologies Helping To Cut UK Food Waste
17TH DECEMBER, 2019 5 (Legal) Ways To Reduce Your Corporation Tax bill
10TH DECEMBER, 2019 Continuing Innovation After Brexit
4TH DECEMBER, 2019 8 Important Factors To Consider When Starting Up A Business
26TH NOVEMBER, 2019 Are You A Growing Business? Get Money From The Government To Help With The Costs
19TH NOVEMBER, 2019 Why Construction Companies Should Embrace R&D Tax Credits
13TH NOVEMBER, 2019 7 Most Common Misconceptions About R&D Tax Credits
5TH NOVEMBER, 2019 How Should I Allocate My Staff Time For An R&D Tax Credit Claim?
31ST OCTOBER, 2019 Do R&D Tax Credits Represent Value For Money For The Government?
22ND OCTOBER, 2019 What Are The Four Main Benefits Of R&D Tax Credits?
14TH OCTOBER, 2019 Flight Shame Has Landed - But Could R&D Be The Aviation Industry's Ticket To Greener Travel?
10TH OCTOBER, 2019 What Power Does HMRC Have Over My R&D Tax Credit Payment?
1ST OCTOBER, 2019 Why Do Some Applications For R&D Tax Relief Fail?
24TH SEPTEMBER, 2019 R&D Tax Credits: What Happens If I Need To Switch From The SME Scheme To The RDEC Scheme, Or Vice Versa
17TH SEPTEMBER, 2019 What Financial Help Is Available In The UK For Entrepreneurs?
10TH SEPTEMBER, 2019 What Consumables Can Be Claimed Under R&D Tax Relief?
3RD SEPTEMBER, 2019 How Long Does It Take For HMRC To Make A Decision On An R&D Tax Credit Claim?
29TH AUGUST, 2019 What Is The Most Efficient Way Of Submitting An R&D Tax Credit Claim?
21ST AUGUST, 2019 Are Businesses In Wales Getting The Most Out Of The R&D Tax Credits Scheme?
13TH AUGUST, 2019 How Can Companies Find Extra Money To Help Prepare For A No Deal Brexit?
6TH AUGUST, 2019 Quick Guide To R&D Tax Reliefs In Engineering
31ST JULY, 2019 Claiming R&D Tax Credits In The Healthcare sector
26TH JULY, 2019 How Can Businesses Make R&D Investment A Priority?
18TH JULY, 2019 How Will Brexit Affect R&D Tax Credits?
12TH JULY, 2019 Tax Cloud Launches In Ireland
5TH JULY, 2019 How To Claim A Critical Tax Boost For Your SME
5TH JULY, 2019 R&D Tax Credits Made Simple And Affordable
28TH JUNE, 2019 Why Are SME’s Missing Out On R&D Tax Relief
14TH JUNE, 2019 Is My SME Eligible For R&D Tax Credits?
3RD JUNE, 2019 Why Use An R&D Portal Over An R&D Advisor?
24TH MAY, 2019 How SMEs Can Benefit From R&D Tax Credits
14TH MAY, 2019 Charities Benefit Following Tax Cloud's Successful Show at Accountex
25TH APRIL, 2019 Tax Cloud's Most Innovative Companies 2019
12TH APRIL, 2019 Accidental Innovation - Tax Cloud's Top 8
5TH APRIL, 2019 A Practical Guide To R&D Tax Relief At Accountex 2019
27TH MARCH, 2019 What Software Projects Qualify For R&D Tax Credits?
15TH MARCH, 2019 3 Automotive Innovations To Look Out For In 2019
1ST MARCH, 2019 What Is Research And Development In Business?
22ND FEBRUARY, 2019 Growth Hack: Tap Into R&D Tax Credits
15TH FEBRUARY, 2019 Beyond R&D Tax Credits - Public Funding For Your Innovative Start-up
1ST FEBRUARY, 2019 5 Steps To Deliver An Optimised R&D Tax Credit Claim
25TH JANUARY, 2019 Top Tax Cloud FAQs
16TH JANUARY, 2019 What Projects Qualify For R&D Tax Credits In The Medical Industry?
11TH JANUARY, 2019 Accounting Practices Are Generating Fee Rates Of £325/hr
2ND JANUARY, 2019 R&D Tax Credits - It's Not As Difficult As You Think
14TH DECEMBER, 2018 4 Ways To Determine If You Qualify For R&D Tax Credits
26TH NOVEMBER, 2018 What Projects Could Be Eligible For R&D Tax Relief In Manufacturing?
2ND NOVEMBER, 2018 How To Know If Your Business Is Entitled To R&D Tax Credits
25TH OCTOBER, 2018 Why Isn’t The Agricultural Industry Claiming R&D Tax Credits?
10TH OCTOBER, 2018 Is Your Business Eligible For R&D Tax Relief?
3RD OCTOBER, 2018 The Most Common Mistakes People Make With R&D Tax Credits
18TH SEPTEMBER, 2018 #1 R&D Tax Claim Portal ‘Tax Cloud’ Launches Xero Integration
14TH SEPTEMBER, 2018 What To Look For In An Online R&D Tax Credits Claim Portal
7TH SEPTEMBER, 2018 5 Ways To Grow Your Accountancy Practice
31ST AUGUST, 2018 Common Pitfalls To Avoid While Claiming R&D Tax Credits
24TH AUGUST, 2018 How Far Back Can I Claim R&D Tax Credits?
17TH AUGUST, 2018 Should I Use A Specialist Or My Accountant For My R&D Tax Credits Claim?
27TH JULY, 2018 3 Things To Consider When Making An R&D Tax Credits Claim
13TH JULY, 2018 R&D Tax Credits – Don’t Fall Through The HMRC Trapdoor
25TH JUNE, 2018 Tax Cloud Shortlisted For Innovation Of The Year
30TH APRIL, 2018 Benefits Of A Self-Service R&D Tax Credit Portal
13TH MARCH, 2018 R&D Tax Credits Platform Tax Cloud Celebrates 100 SME’s Seeking Expert Support
5TH FEBRUARY, 2018 How R&D Tax Credits Can Help Your Startup Grow
29TH JANUARY, 2018 Getting The Best Returns From Your R&D Tax Credits Claim
22ND JANUARY, 2018 Introducing: The Tax Cloud Partner Programme
18TH JANUARY, 2018 What Costs Can You Claim Through R&D Tax Credits?
9TH JANUARY, 2018 Common Misconceptions About R&D Tax Credit Claims
5TH DECEMBER, 2017 R&D Tax Credits Made Simple For Small Businesses
20TH NOVEMBER, 2017 The 3 Things You Need To Consider When Making An R&D Tax Credits Claim
Popular Tags
Start your Tax Cloud claim now Discover if you qualify and ensure your R&D tax claim is maximised. Get started
Powered by Myriad Logo

Myriad Associates helps businesses maximise tax reliefs and secure R&D grant funds. We specialise in R&D Tax Credits, Video Games Tax Relief, Innovate UK grants, Horizons 2020 grants, and Research and Development Capital Allowance Claims.

  • Submitting R&D tax claims since 2001
  • 100% success rate
  • Over £100m claimed and counting
  • Industry leading specialists
  • In-house technical, costing and tax experts
  • Member of the Research and Development Consultative (RDCC) committee

Meet some of the team behind Tax Cloud

Barrie Dowsett Barrie Dowsett ACMA CGMA Chief Executive Officer
David Farbey David Farbey MA, FISTC, FRSA Technical Consultancy Director
Lisa Waller Lisa Waller CTA, ACCA R&D Tax Manager
Lauren Olson Lauren Olson MA, MISTC Senior Technical Consultant