UK-based SMEs could save up to 31.25% of every £1 spent on research and development (R&D) through tax relief aimed at supporting innovation in British companies. The definition of R&D activity is broad and can be extended beyond the obvious research streams.
We have come long way since a few years ago, when the Treasury refused to accept that policy makers could have any effect on innovation.
Whilst technological innovation must undoubtedly be at the centre of growth and recovery, the market still needs, and responds well to incentives like the R&D tax incentives. This is key as the benefits of inventions are experienced by other companies, who can then copy the new idea without having to pay the research costs involved.