Insufficient funds? R&D grants for small business17 July 2006
Despite the fact that the government is making financial assistance available to small business in the UK, a large proportion of them are missing out because they don't know they are entitled to them.
That is the finding of a new report analysing whether companies in Britain capitalise on the tax breaks offered to them in order to encourage research and development (R&D) work. Research by Deloitte found that just 45 per cent of those firms eligible for the relief were utilising it and 24 per cent had no idea that the programme existed.
Head of R&D tax services at Deloitte said: "It is ironic that the firms that can benefit most are the ones that are missing out."
In addition to the tax breaks, there are several other governmental initiatives that are designed to help start-ups and small businesses to grow and to be able to compete on a global scale.
On top of R&D tax benefits, businesses involved in this kind of work can also apply for grants. These are available either from a number of sources and although there is often much competition, and quite a few forms to fill out, they are well worth applying for.
- The Department of Trade and Industry offer four different types of grant for R&D. These are for micro projects, where companies with ten employees or less can gain up to £20,000 in assistance for projects lasting for no more than a year; research projects, where £50,000 is available to companies of under 50 employees involved in assessing feasibility of new technology; development projects for up to 250-strong firms researching a major technological development; and exceptional development projects, for firms making industry-specific technological advances.
- European Framework Programmes are designed to support collaborative research throughout the EU and are available to businesses of all sizes. This works on an individual, as opposed to a national, basis and so can be competitive. The programmes do, however, cover a wide range of research sectors so despite a stringent application process, businesses serious about their R&D would do well to submit a proposal.
Other avenues of R&D funding are available on a less official basis, for example through the university and colleges network. For more information on the grants available to small businesses, see the Business Link website.
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