PM pledges increase in support for Research & Development

Boris Johnson has told the CBI Conference that he will increase the amount of annual Research and Development (R&D) tax relief.

He told business leaders “In order to help businesses innovate, this government will double funding for research and development to £18bn in the next Parliament – the biggest ever increase in support for R&D”

Mr Johnson is thought to be planning to increase the R&D tax credit rate from 12% to 13%.

Labour have also pledged to commit extra investment in research and development, with both the government and opposition aiming to increase R&D spend as a proportion of UK GDP, from 1.7% up to 2.4% by 2027 and 3% by 2030.

What is R&D tax relief?

R&D tax reliefs are HMRC incentives created to encourage innovation and technological advances in the UK. For more information, read our R&D tax relief guide here:

.https://www.hawsons.co.uk/wp-content/uploads/2019/09/RD-Tax-Credits-Fact-Sheet-electronic.pdf

 Am I eligible?

Many companies carry out eligible R&D activities without realising that this work qualifies for relief.

R&D tax incentives are not just for niche sectors – eligible companies can be in any sector, any size, and even be loss-making. A common misconception is that R&D incentives are only for those who undertake scientific research in a laboratory, but this is certainly not the case.

 How we can help

We have extensive experience of making successful R&D tax relief claims. If you would like to discuss whether your company may be eligible to claim R&D relief, please get in touch with us.

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