Government has taken a number of steps to provide greater R&D support for business.
R&D Tax Credits were introduced for small and medium-sized companies in 2000, and for large companies in 2002. The R&D tax credits were designed to act as an incentive to increase the levels of business expenditure on R&D. Information on eligibility for the tax credit, along with guidance on how to claim them is available on the HM Revenue & Customs website. The new guidelines on the meaning of R&D for tax purposes developed by the DTI in conjunction with the HM Revenue & Customs are intended to provide businesses with a simpler and more straightforward definition of R&D for tax purposes. Click here to view Frequently asked questions about the R&D Tax Credits.
Technology Strategy is part of the Government's Science and Innovation ten-year framework (2004 - 2014) published in July 2004. It identifies new and emerging technologies, critical to future business success, into which government funding and activities can be directed. The Technology Programme is the combination of business support products and information that DTI are offering business in response to the Technology Strategy. The programme will be delivered through open competitions for funding using two DTI business support products -
Funding received under the Technology Strategy is classified as a notified State Aid, which means a claim for the SME tax credit cannot be made for a project for which Technology Strategy support has been awarded. However, a claim can be made under the large company R&D tax credit scheme for the whole of a company's eligible R&D costs - whether paid for by its own contribution or by DTI Technology Strategy funding.
Grant for Research & Development replaces the DTI's Smart scheme. It aims to help individuals starting up businesses and SMEs already based in England carry out research and development work on technologically innovative products and processes. By offering a grant towards the costs of carrying out the research and development work, the Grant for Research and Development will encourage businesses to carry out projects that they would not necessarily undertake without the grant and lever in to these projects finance from reluctant private investment sources.
There is no automatic entitlement to the grant. The grant is discretionary and projects will be assessed against selection criteria to ensure quality and value for money.
The Research Project grants and Development Project grants (including Exceptional Projects) given through the Grant for R&D programme are notified State Aids, which means a claim for SME R&D tax credits cannot be made for a project for which one of these grants has been awarded. However, a claim can be made under the 'large company' R&D credit scheme for the total amount of qualifying R&D, including R&D funded by this grant. Further information on Grant for Research and Development can be obtained from the Business link website.
Knowledge Transfer Partnerships are about forging partnerships between industry and an academic establishment. The aim is to promote businesses gaining access to the knowledge and expertise available in the UK's Universities, Colleges and research organisations that might be needed to develop new products, services and processes. Part funded by the government, Knowledge Transfer Partnerships can help firms gain access to expertise that can potentially result in increased business profitability.
Grant for Investigating an Innovative Idea is a grant which enables companies to work with a consultant to identify the specific areas where help is needed to make an idea into reality. The grant can be used to get the practical advise needed to introduce new technology to improve your business, exploring the commercial feasibility of an idea and whether there is a market for it. The grant covers 75% of the costs of consultancy.
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