By December 15, 2019 Read More →

UK businesses are potentially missing out on £10bn of R&D funding each year

Engineering companies in the UK are potentially missing out on over £10 billion of R&D funding each year, new research has revealed.

The study, commissioned by innovation specialist MPA, found that one in five (21%) of innovation active engineering firms are not taking advantage of the Government’s R&D Tax Credit scheme, which allows companies to claim back up to 33p for every £1 spent on R&D activity.

On average, engineering companies invest £386,000 a year on R&D activity, meaning they are potentially able to claim £100,360 in funding. With over 100,000 UK engineering firms not claiming, despite describing their company as innovation active, a staggering £10.2 billion is going unclaimed each year.

Reasons for not claiming the funding vary, but the most common answer given by engineers is that they don’t believe their companies are eligible (10%).

However, the research revealed that many engineering companies probably qualify without them realising. Some examples of indicative qualifying activities are, if your company develops new processes to: improve efficiency, quality or perform-ance; overcome unplanned technical difficulties; or create bespoke solutions for clients.

Two-thirds (67%) of workers think that their firms are ‘innovation active’, which is often an accurate indicator that a company is eligible for the R&D Tax Credit scheme. Despite this, only a third (37%) say that their companies claim the available funding.

Nigel Urquhart, senior technical analyst at MPA, said: “The research highlights that more work needs to be done to raise awareness of the R&D Tax Credit scheme, as these innovative companies could save themselves hundreds of thousands of pounds. This money could then be reinvested to fund further innovation.”

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