Prime Minister’s plans for boosting innovation post-election

It’s being called the ‘Brexit Election’.

On 12^th December, we will visit the polling stations for yet another election. But this time, instead of being fought on the traditional arguments such as health, education, defence etc., this election is revolving around Brexit.

Who is for it; who is against it; what will so-and-so do if they win?

Pledges are made and mandates scrutinised.

It goes on and on.

But one particular nugget stood out for me.

Boris Johnson has indicated he plans to implement a range of tax breaks for businesses if his party is successful in the upcoming election – including raising the R&D tax credit rate.

Perhaps my conversation with the Prime Minister a couple of weeks ago got him thinking.

Under the plans, the R&D tax credit rate for large companies will increase from 12% to 13%. I would suspect the overall R&D Tax Credit initiative will be reviewed to help stimulate further growth and innovation!

Whilst that may not seem like a substantial increase, when it comes to receiving a tax credit for your R&D activity, it can make a huge difference. After all, the average amount claimed last year by companies across Northern Ireland was £57,250.

No matter what your personal politics, forward thinking and incentives such as this are ways of stimulating and boosting innovation on a cross-industry basis and are most certainly a welcome train of thought.

That is why it is important that with increasing levels of R&D financial support available, businesses should really be looking to partner with specialised and trusted specialist consultants to proactively maximise and manage their R&D tax credit claims in a compliant manner.

The Momentum Group works closely with progressive and innovative SME and large companies across the UK and Ireland to strategically advise and manage this complex and specialised area.

As a trusted partner, using our expertise, experience and insight, Momentum can optimise the benefit for R&D activity so that relief can be channelled back into the company to facilitate future business growth and prosperity.