Don't let imagery put you off R&D

By LBV

10 Aug 2011

In April this year, the Government introduced new legislation which means companies can now get double the amount of tax relief on money invested in research and development (R&D).

Effectively it means that for every pound a company spends on R&D, it can get two pounds deducted from its taxable profit, saving the company significant sums of money, but also allowing the company to grow by developing new products and services.

From a tax point of view, there’s never been a better time to undertake R&D projects but, from our experience, many business owners are put off by the “test tube imagery” associated with R&D.

They are unsure exactly what the term means and exactly what type of projects qualify. The truth is it doesn’t just apply to scientific businesses or really hi-tech companies, it can be something as simple as adapting an existing product to work in different way.

For tax purposes, R&D is defined as the resolution of a technical or scientific uncertainty or the application of existing technical or scientific knowledge in a new and unusual manner.

Each R&D project has to be assessed individually, but several projects can attract relief at the same time. Companies can now receive a deduction of 200 per cent of qualifying expenditure and further legislation is expected to be introduced in 2012 to increase the total R&D deduction to 225 per cent and abolishing the £10,000 minimum expenditure threshold for R&D relief.

While R&D isn’t relevant to all businesses, the Government is clearly hoping the increased tax reliefs will encourage businesses to get spending and get innovating, creating new jobs and boosting the economy.

David Bennett
Moore and Smalley Chartered Accountants

 

Enjoyed this? Read more from LBV

Latest news

1

Business board launches to support county's economic growth Lancashire Business Board

Business board launches to support county's economic growth

18 Jul 2024

2

Breck to deliver £150m of affordable homes over four years Breck Development In Progress

Breck to deliver £150m of affordable homes over four years

18 Jul 2024

3

New accreditation unlocks growth potential for repair centre Datechs Team June 2024

New accreditation unlocks growth potential for repair centre

19 Jul 2024

4

Bespoke wins Wiserr lead generation contract Bespoke wins Wiserr Digital Marketing Contract.jpg.jpg

Bespoke wins Wiserr lead generation contract

19 Jul 2024

5

Commercial landlords: Five tips to avoid tenancy problems Five tips to avoid tenancy problems SOCIAL.jpeg.jpg

Commercial landlords: Five tips to avoid tenancy problems

19 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

What are Menopause Action Plans & How to Write One
Menopause Action Plan 2024.png.png
LBV Hub Webinar
19 Jul 2024

What are Menopause Action Plans & How to Write One

~ Online ~, ~ Online ~, ~ Online ~

12:30 - 13:00

Business Networking in Fylde, Blackpool
Blackpool Fylde Image.jpg.jpg
LBV Hub Networking
19 Jul 2024

Business Networking in Fylde, Blackpool

Village Hotel Blackpool, Blackpool, FY3 8LL

07:30 - 09:30

Skills Bootcamp in Procurement - Cohort 1
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Seminars
30 Jul 2024 - 08 Oct 2024

Skills Bootcamp in Procurement - Cohort 1

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Knowledge & Networking: Basic Digital Marketing
Chamber Logo1.png.png
LBV Hub Seminars
12 Aug 2024

Knowledge & Networking: Basic Digital Marketing

Lancaster Golf Club, Lancaster, LA2 0AJ

14:00 - 13:00

Understanding Menopause
menopause.png.png
LBV Hub Webinar
15 Aug 2024

Understanding Menopause

x, Online, x

12:30 - 13:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin