Funding Your Research & Development

Developing new product ranges, manufacturing processes and unique marketing tools is both expensive and time consuming but so necessary to move a business forward and to stay ‘ahead of the game.’

Naturally, when contemplating a new product range marketing research is key. Regardless of how good a concept you might feel it to be, your business can’t afford to risk the integrity of its brand, without doing ‘due diligence.’ This involves la great deal of research and development which costs time and money.

However, it’s surprising just how many businesses don’t realise that they can ‘offset’ many of the costs associated with new product development against their corporation tax. This can be done in the form of R & D (research and development) tax credits provided the product offers something new in its approach. This could be the way its constructed, the materials used to make it, a unique way of marketing it, or even a specially developed way of packaging and administering it.

Other things that can be claimed for, as part of the whole R & D process, are wages for staff involved with the project as well as associated third party costs - not to mention a proportion of your utilities! Adaption of an IT system or health and safety aspects that perhaps relate to the new product in terms of material storage are also possibilities.

Claims can be made up to 2 years after the end of the accounting period that the new product / service relates to and payments can take the form of a credit - where a proportion of your corporation tax is discharged or - a cash payment.

The amounts claimed can be ‘quite significant’ and form a major boost to a company’s finances whilst encouraging the levels product and service development that will help to maintain the prosperity of a business.

For further advice on initial funding and how to go about making an R&D claim, talk to P&MD. We work with a pool of proven investors and R&D experts - whom, over the years have helped P&MD clients to achieve their business aims and objectives.