Worth the effort

KEY POINTS

• R&D tax credits are a useful part of a business’s funding cycle.
• Average annual claim made by an SME is more than £49 000.
• Large businesses can claim R&D expenditure credits.
• Good record-keeping is key.

Since their introduction in 2000 research and development (R&D) tax incentives have provided businesses with a welcome cash boost helping to offset some of the cost of innovation and fuelling further development and growth.

For start-ups and small and medium-sized enterprises (SMEs) R&D tax credits should be considered an important part of their funding cycle. The fact that the tax credit arrives in the form of a cash payment – in most cases within four to six weeks – is hugely valuable particularly to early stage companies that are not yet making much ...