Yasmin Dalton
Consultant
Innovation is the cornerstone of progress in today’s fast-paced world, and research and development (R&D) is the engine that propels it forward. Whether you are a start-up or an established enterprise, your ability to innovate often hinges on your R&D budgeting strategies.
At TBAT Innovation, we understand the financial challenges that can impede innovation, and we are here to help you navigate them. In this blog, we will explore the services TBAT Innovation offer, R&D budgeting strategies that can empower your organisation to continue its journey towards ground-breaking innovation and navigating financial challenges.
With more than two decades of expertise collaborating with technology & research and development organisations all over the UK, we specialise in guiding projects from beginning to end. Our comprehensive suite of innovation support consultancy services is instrumental in driving the success of companies’ R&D endeavours and enhancing value for our clients.
R&D Tax Credits:
Our tried and tested process of claiming R&D Tax Credits for our clients has proven successful; building robust and comprehensive technical and financial reports that support claims against HMRC scrutiny. We have a great understanding of HMRC requirements and have successfully claimed from a range of industry sectors.
Grant Funding:
Grant Funding is provided through a competitive process, in which you apply to have your project assessed before being awarded any money from the funding body, if successful. Application forms can be long and complex, needing a high level of detail provided within tight word limits. It is crucial to get the right balance of providing key information and addressing what the assessors want to see, and that is exactly what our team of expert Consultants do!
Patent Box:
We help businesses claim Patent Box tax relief, which rewards UK companies that are driving innovation and developing new patented inventions. Companies can use the Patent Box to reduce Corporation Tax on profits. Your company could pay a reduced rate of 10% Corporate Tax if it exploits patented inventions and innovations.
Video Games Tax Relief:
We help businesses to claim Video Games Tax Relief for the design, production, and testing of new video games. UK game developers can receive a Corporation Tax reduction or rebate worth up to 20% of the core production costs of a game.
Capital Allowances:
We help businesses claim Capital Allowances tax relief to offset capital expenditure by allowing it to be deducted against their annual taxable income. UK businesses can claim capital allowances tax relief when they buy assets that are kept to use in the business, for example: equipment, machinery, business vehicles – these are known as plant & machinery.
SEIS / EIS Support:
We support start-ups and early-stage businesses looking for investment, to grow and develop by two generous tax relief schemes. For a business, the EIS and SEIS schemes benefit you by making you a more attractive, less risky investment opportunity to investors. For an investor, the EIS and SEIS schemes offer potentially significant income tax and capital gains reliefs when they make an investment (into an eligible start-up or business).
R&D budgeting is the foundation of financial planning for any organisation. It involves the strategic allocation of resources, including financial and human capital, to support R&D initiatives. An effective R&D budget not only fuels innovation but also ensures that these initiatives align with your company’s long-term goals and strategies. Here’s why R&D budgeting is vital:
Resource Allocation:
It allows you to allocate resources efficiently to your R&D projects, ensuring they have the necessary funding to succeed.
Risk Management:
R&D budgets help you assess and manage the risks associated with your innovation initiatives, allowing you to plan for contingencies.
Strategic Alignment:
A well-structured R&D budget ensures that your innovation efforts align with your company’s overall mission and competitive objectives.
Financial Control:
Budgeting provides a means to control R&D spending, preventing cost overruns and ensuring fiscal responsibility.
At TBAT Innovation, we recognise that financial hurdles can be particularly challenging in the realm of R&D. Here is how we can work together to overcome these challenges and continue driving innovation:
Adopt a portfolio approach with our expert guidance. We can help you allocate resources to a mix of projects with varying risk levels, diversifying your innovation efforts and increasing your chances of success.
Partner with TBAT Innovation to leverage external funding sources like government grants and collaborative opportunities. These avenues can supplement your budget, ensuring you have the necessary financial resources.
Prioritisation is key, and our experienced consultants can provide valuable insights.
Rely on TBAT Innovation to monitor your competitors and their R&D investments. We can help you adapt your budget to remain competitive and responsive to market changes.
With our support, implement robust project management practices to optimise R&D spending. Regular assessments and adjustments can ensure the efficient allocation of resources.
Explore available R&D tax credits and incentives. We will guide you through the process to ensure eligibility and well-documented R&D activities.
Our consultants can help you establish a contingency fund within your R&D budget to account for unexpected challenges or opportunities. This financial flexibility ensures your innovation initiatives remain on track.
We encourage collaboration between your R&D team and other departments. By sharing insights and aligning goals, you can improve decision-making and resource allocation.
R&D budgeting should be a dynamic, evolving process. Regular assessments of your R&D projects, with TBAT Innovation’s guidance, can lead to informed and timely adjustments.
In summary, R&D budgeting is a cornerstone of innovation, and TBAT Innovation is here to help you navigate the financial challenges that come with it. By implementing these strategies, we can empower your organisation to overcome these hurdles and continue to drive groundbreaking innovation, ensuring long-term success and growth in your industry.
With our expertise and the services TBAT Innovation offer, the journey to innovation becomes more accessible. Book an appointment today.
Like many R&D tax credit professionals and accountants, TBAT have conducted a number of compliance checks, supporting both our own claims and those of clients who sought assistance with claims prepared by others. In our latest article, we take you through how TBAT Innovation is managing these compliance checks.
On September 16, 2024, HMRC held the R&D Communication Forum (RDCF), where several updates were shared. In our latest article, we discuss updates regarding the Enhanced Research Intensive Scheme (ERIS), the Additional Information Form, initiatives for raising standards in the R&D market, the Mandatory Random Enquiry Programme, and HMRC operations.
Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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