Overview:
The information within this guide has been generated following a project undertaken by the IPIA to identify sources of funding both from Government and private enterprise for research and development, product innovation, and carbon reduction.
Each section of the resource guide below has been vetted and checked by the IPIA – and the providers researched – in order to ensure they can provide members with high-quality support, information and consultancy to access grants, subsidies and tax relief.
Think Incentives
Think Incentives specialises in innovation-focused consultancy, offering support in government grants, tax incentives, and IP protection. With a background in science, engineering, and Big4 consulting, Think Incentives assist businesses of all sizes across sectors, including the print industry. Aiding multinational clients in grant funding for energy efficiency, R&D tax incentives, and manufacturing process optimisation.
Think Incentives aims to expand print sector access to innovation grants and incentives, offering support in project funding, tax incentives, and innovation protection.
Think Incentives provides free webinars tailored to the print sector, speaking engagements at networking events, and personalized sessions for IPIA members. Its flexible approach ensures valuable support in the most convenient way for members.
Think Incentives, for example, is assisting IPIA Members with accessing the Government’s new Industrial Energy Transformation Fund (IETF) grant programme.
The grants provided by the fund are designed to help manufacturing businesses with high
energy use to cut their energy bills and carbon emissions – through facilitating investment in energy efficiency and technology that will lower their carbon emissions.
Find out more: thinkincentives.co.uk
Azets
The Research and Development (R&D) tax relief scheme is designed to incentivise innovation within the UK and reward companies undertaking R&D. There are two schemes: the Small or Medium-sized Enterprise (SME) scheme and the Research and Development Expenditure Credit (RDEC) scheme.
SME Scheme:
- SME criteria for R&D tax relief purposes: Fewer than 500 Full-Time Employees (FTEs) & Annual
- turnover not exceeding £100m or balance sheet not exceeding £86m.
- SME R&D tax relief is an enhanced additional deduction and is a notified state aid.
- The benefit of the claim goes below the line in the accounts (in the P&L tax charge).
RDEC Scheme:
- Applicable to companies breaching SME thresholds for R&D tax relief purposes.
- RDEC is a taxable credit.
- RDEC goes above the line in the accounts (e.g., as other income or against staff costs).
Resources
| Example: £50k of Qualifying R&D Spend | SME Scheme Pre 1 April 2023 | SME Scheme Post 1 April 2023 | RDEC Scheme Pre 1 April 2023 | RDEC Scheme Pre 1 April 2023 RDEC Scheme Post-1 April 2023 |
|---|---|---|---|---|
| Benefit | 130% additional tax deduction | 86% additional tax deduction | 13% RDEC | 20% RDEC |
| Impact on Tax Paying Company | £12,350 of tax saved | £10,750 of tax saved | £5,265 net credit (used as a deemed tax payment) | £7,500 net credit (used as a deemed tax payment) |
| Impact on Tax Loss Making Company | Future tax saving of £16,250* | Future tax saving of £10,750* | £5,265 of a net credit (can be taken as a cash repayment)*** | £7,500 of a net credit (can be taken as a cash repayment)*** |
| Impact on Loss Making R&D Intensive SME | - | - | £13,485 tax credit (cash repayment)** | - |
*Assume additional tax losses are carried forward to be relieved against taxable profits at 25%.
**Assume the tax credit is calculated using the enhanced additional deduction.
***Assume the company has incurred PAYE and NIC on R&D workers in excess of the credit amount.
Changes Coming into Effect:
R&D Tax Relief Reforms:
- Claim notification:
- For periods beginning on or after 1 April 2023, a pre-claim notification is required for first-time claimants or those who haven’t claimed in the previous 3 calendar years.
- The notification should be made within 6 months of the end of the accounting period.
- Additional information:
- From 1 August 2023, additional information forms are required in the CT600 for an R&D claim.
- Overseas Expenditure:
- From 1 April 2024, payments to overseas subcontractors or externally provided workers will no longer qualify.
- Data Licenses and Cloud Computing Services:
- For periods beginning on or after 1 April 2023, data license and cloud computing service costs can be qualifying expenditure.
Eligibility:
- Evidence of a scientific or technological advance sought.
- Scientific or technological uncertainties demonstrated.
- Evidence of non-readily deducible work done to try and overcome the uncertainties.
Qualifying Costs:
- Costs can be claimed from the point the company realises the need for an R&D project to where the uncertainties are resolved or the project is ended.
- Qualifying R&D cost categories: Staff costs, Subcontractors (SME), Externally provided workers,
- Clinical trial volunteers, Utilities, Software licenses, Consumables.
- Costs not eligible: Patent process, Commercialisation, Marketing.
Find out more: azets.co.uk
Download the guide for ‘Case Study’.
Randd
Randd is an R&D Tax Credits specialist based in Derby, East Midlands, with 15 years of experience helping thousands of UK businesses successfully claim back millions of pounds using the R&D Tax Credits incentive.
R&D Tax Relief:
- SMEs (small and medium-sized enterprises) can deduct an additional 86% of their qualifying costs from yearly profit.
- Loss-making SMEs classified as R&D intensive can claim a higher payable tax credit rate of 14.5%.
- Large companies covered by the RDEC scheme can claim an expenditure credit calculated at a rate of 20%.
Future Changes:
- From April 1, 2024, RDEC and SME schemes will be merged into one, except for loss-making R&D intensive SMEs, which will qualify for a new SME intensive scheme.
- R&D tax credit rate for merged scheme: 20%, and loss-making R&D intensive SMEs will receive a 27% tax credit.
Randd can also assist with:
- Examples provided for profitable SMEs, loss-making SMEs, loss-making R&D intensive SMEs, and large companies under the RDEC scheme.
- Information on the impact of future changes to R&D tax credit rates
- Provide detailed information on the R&D tax credits being continually reviewed by the government to ensure effectiveness
- Information on the changes in rates and qualifying expenditure
Find out more: randduk.com
Download the guide for ‘Case Studies’.
Innovate UK KTN
The world we live in faces ever-changing societal, environmental and economic challenges, which are felt regionally, nationally and also globally. Innovate UK KTN’s mission is to connect ideas, people and communities to respond to these challenges and drive positive change through innovation.
Innovate UK KTN connects innovators with new partners and opportunities, aiming to accelerate ambitious ideas into real-world solutions. The organisation spans business, government, funders, research, and the third sector.
Connecting for Positive Change:
- Mission to connect ideas, people, and communities to respond to challenges and drive positive
- change through innovation.
- Diverse connections across sectors.
- Expertise in various skill sets and disciplines.
Services:
- Support for early-stage innovators and established companies.
- Online resources to identify help and support for innovation journey.
- Business support, funding, and connections to partner organisations.
Find out more: iuk.ktn-uk.org
Download the guide for ‘Case Study’.
UK Research and Innovation (UKRI)
UKRI invests in research and innovation to enrich lives, drive economic growth, and create jobs and high-quality public services across the UK.
Key points:
- UKRI provides funding and support across all academic disciplines and industrial areas.
- There are different eligibility criteria for each funding opportunity and eligibility is dependent on whether you are a business or technology developer.
How Proposals are Assessed:
- Businesses apply for funding to Innovate UK.
- Independent expert assessors review applications.
- Final assessment by Innovate UK funders panel.
- Funding allocations are based on a portfolio approach to ensure strategic coverage.
- There are quality thresholds for applications that must be met to ensure they are put forward for funding consideration.
Find out more: ukri.org
Government Funding Opportunities
The Government has developed a range of funding opportunities for innovation in the manufacturing sector and has created a portal that facilitates searching and applying for competitions. This can be accessed at the link here.
Examples include:
- Resource-efficient or bio-based materials and manufacturing, FS 2
UK registered organisations can apply for a share of up to £1 million for innovative feasibility studies in advanced low carbon manufacturing. This funding is from Innovate UK and BBSRC. The aim of this competition is that UK materials and manufacturing will be net zero and resource efficient. Your project must relate to one or both of the following themes: resource efficient materials and manufacturing; sustainable bio-based materials and biomanufacturing. Opens: 2nd April 2024, Closes: 29th May 2024
