Despite U.K R&D spending reaching a record breaking 33.1 billion pounds, its efforts were still not enough and it currently only ranks 11th in the European Union, according to Office Of National Statistics. This signifies that Britain is lagging behind its major European peers when it comes to R&D spending.
Britain invested 1.67 percent of its gross domestic product, which was below the EU average of 2.03 percent and about half the level seen in Sweden. It has been commented that these figures may help to explain the country’s dismal productivity performance throughout the past years.
Policy makers have long expressed concern about this persistent sluggishness, although Mark Carney the Bank of England Governor remains optimistic that productivity growth will accelerate.
Prime Minister Theresa May is determined to improve the nations rankings and has pledged a decade-long push to increase R&D spending in efforts to bring it into line with other rich nations.
R&D is crucial to productivity, which is crucial to overall economic growth, therefore this push to encourage people to become more innovative and invest into R&D within their company’s is crucial.
If your company is incorporating R&D into its business practices it may be eligible for an R&D tax relief. When lodging an R&D Tax claim, you need to be able to clearly describe the process, failures and successes of the project. The most efficient and effective way is to acquire an R&D tax specialist to guide you through the process. This ensures the R&D plans and application is lodged accurately and in accordance with all legislation and requirements.
Swanson Reed is a specialist R&D Tax Advisory firm that takes the stress out of lodging an R&D tax claim. If you believe your company could be eligible to receive an R&D tax releif, contact a Swanson Reed R&D tax specialist for a free assessment. We look forward to speaking with you and guiding you through the process of attaining your tax relief.