research and development

New Research & Development Grant for Small Business Innovation

Small businesses will be able to access financial support to fund innovations from April, following the launch of a new government research and development grant. Managed by the Technology Strategy Board (TSB), the R&D grant will be introduced on the 4th April 2011 and offer small firms three types of grants ? proof-of-market grant (firms can apply for up to £25,000) proof-of-concept grant (up to £100,000) and development of prototype grant (up to £250,000) The grant will allow small businesses across the UK to research and develop new products, processes and services. The initiative supersedes the Grant for R&D scheme previously managed by the regional development agencies. “Innovative small companies are vital to the UK’s economic future.” said TSB chief executive, Ia... »

Tax Relief for Research and Development

Relief is available on Research and Development expenditure, which means that a company can claim enhanced relief on qualifying costs against its profits. To qualify as Research and Development (R&D), an activity must be treated as R&D under generally accepted accounting practice, and fall within any guidelines issued by the Treasury. The Department of Trade and Industry (DTI) has issued guidelines on what it considers is treated as R&D for accounting purposes. What reliefs are available? Small and medium sized enterprises (SMEs) may claim: R&D tax relief – which increases the deduction to 175% of the qualifying expenditure (150% prior to 1 August 2008), or payable R&D tax credit – which allows companies who are not in profit to take the relief up front in t... »