This week, NAAME Project Manager, James catch-up with Greg Davidson, R&D consultant for MPA. MPA specialise in helping innovative companies grow their business. Their professional services include: consultancy, strategic advice and planning, R&DTax initiatives, accounting & tax services, grants advice and much more.
Research shows that the average Research and Development Tax Credit claim value made by SMEs across the UK equates to £63,000. MPA have provided NAAME with five things you could do with your R&D clam to grow your business.
1. Continue Innovation Projects
There are multiple ways to qualify for research and development tax credits, but at the heart of it all is innovation. Whether it’s in developing new products or processes, or just approaching a problem in a novel way, these projects have associated costs and a successful R&D tax credit claim can give you the funds to re-invest.
Particularly relevant for start-ups and the manufacutring sector, the innovation funding cycle naturally pushes businesses to the next stage of growth.
2. Purchase New Equipment
Efficiency, quality or scalability are all common barriers to growth for small businesses.
£63,000 could go towards new machinery, better quality packaging, bigger premises, more staff etc. The possibilities can be exciting for those looking to take the next step. Of course this new machinary will naturally assist in contuining your innovation projects and likely lead to productivty improvements and a reduction in defects.
3. Develop New Processes
From machinery to IT equipment, there are always opportunities to do things differently and improve.
Funding received from R&D tax credits could go towards the purchase, development or implementation of new systems and processes to increase efficiency, productivity or profitability.
4. Invest in Talent
At the heart of any successful business is the people; many businesses use R&D tax credit funds to attract top talent to their business, build internal knowledge and expand expertise.
Ensuring your people stay happy, trained and challenged – especially within new and innovative companies – promotes not only personal growth, but ultimately company growth too.
Creating a culture of continous improvement also enables workers to feel valued and contribute valuable ideas to improve the efficiency of tasks and untilmately make their day jobs easier.
5. Seek Subcontractor Expertise
Businesses that aren’t ready to increase their headcount or simply need temporary support can instead invest funds in expert contractors with the specific skills and expertise required at the time.
This is particularly important for companies with aggressive innovation cycles who may be running complicated projects, or for those who need to keep overheads low.
Research and Development Tax Credits can help businesses unlock thousands of pounds, either in Corporation Tax savings, cash or loss reliefs. It is worth investigating what you could be eligible for.
With special thanks to Greg Davidson, R&D consultant at MPA. With the rise of SMEs in the manufacturing and engineering sector claiming R&D Tax Credits, the benefits are slowly being reaped by the sector. However, there is still so many more organisaitons who are unaware of the benefits that this scheme can offer.
Got a diversification story you would like to share with our members? Want to be featured in our ‘Insight Into’ series? Got a relevent ervice that supports the manufacturing sector? Please get in touch with James: firstname.lastname@example.org
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