Introduction. Grant for R&D. Funding available. Make an Application. R&D Tax Credits. Other Programmes

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Roxanne Gallagher
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2 Introduction Grant for R&D Funding available Make an Application R&D Tax Credits Other Programmes

3 Grant for R&D Innovative products, services and processes can help increase sales, improve profits and maximise operational efficiencies Invest NI can help business become more innovative and competitive by offering a range of financial and advisory R&D support through a single gateway, the Grant for R&D

4 Grant for R&D Funding for Invest NI clients and potential clients Support for technically risky projects Ideas must be exploitable Support for future work - not retrospective Needs match funding Discretionary - subject to Invest NI decision

5 Categories Supported Project Definition - Awards up to 50k New to R&D - Awards up to 70k R&D Projects - Awards up to 250k - Awards greater than 250k

6 Research Definitions Experimental Development Existing knowledge or skills used to plan or design new or improved products, processes or services Industrial Research Planned research to acquire new knowledge and skills to develop new (or significantly improve existing) products, processes or services (excluding prototypes)

7 Examples of Experimental Development and Industrial Research eg Molecular Biology Experimental Development Devising a method for synthesising the antibody for a particular disease on basis of knowledge of its structure and clinically testing effectiveness in patients Industrial Research Investigations undertaken in an effort to distinguish between antibodies for various diseases

8 Project Definition Maximum Rates of Assistance SME s Large Business Experimental Development 50% 40% Industrial Research 75% 65% Maximum support 50k

9 Project Definition Eligible Costs Wages & Salaries Overheads Consultancy Travel & Subsistence Intellectual Property Miscellaneous

10 Enhanced Support for Companies New to R&D Support up to 75% eligible costs to a maximum of 70k (counts as de minimis aid) Eligibility Criteria An individual or a Small company (<50 employees) No Invest NI R&D support within the last 5 years Has the potential to export at a future date

11 Grant for R&D Experimental Development Maximum Rates of Support Company Size Small Medium Large Experimental Development Collaborative bonus (+15%) 45% 35% 25% 60% 50% 40%

12 Grant for R&D Industrial Research Maximum Rates of Support Company Size Small Medium Large Industrial Research Collaborative bonus (+15%) 70% 60% 50% 80% 75% 65%

13 Grant for R&D Eligible Costs Salaries Overheads Consultancy Sub-contracting Equipment Depreciation Trials & Testing Intellectual Property Other: - Materials - Travel & Subsistence - Miscellaneous

14 Make an Application Copy of Application Form and Guidelines on the web Follow the links: Research & Development Support Grant for R&D Make an Application Alternatively contact Telephone:

15 Is Your Business Eligible? Grant for R&D is available to both individuals and new or existing businesses Collaborative projects are welcome If you are currently not an Invest NI client, visit: - Become an Invest NI Client

16 Tips for Successful Applications Project Level of Innovation Technical Risk and R&D Challenge Potential to create IPR Exploitation Potential Company/ Applicant Management Ability & Staff Expertise Additionality Viability Track Record

17 R&D Tax Relief and Allowances Reduces Tax Bill by claiming relief for some of R&D expenditure 2 Systems: R&D Tax Allowances; available to all businesses that have qualifying R&D spend R&D Tax Reliefs; available to businesses subject to corporation tax

18 Overview of R&D Tax Reliefs/Credits SME Scheme Large Company Scheme 175% of enhanced deduction 130% of enhanced deduction Payable credit 24 for 100 qualifying R&D expenditure Can claim for sub-contracted R&D Claim can be reduced if R&D project is subsidised by grant Cannot claim for contributions to independent research Company must own IPR Capped at 7.5m relief per project No payable credit Can only claim for subcontracting to Universities/charities/public sector No reduction for grant or subsidy Can claim for contributions to independent research Company need not own IPR No upper limit Recent accounts must be produced on going concern basis

19 R&D Tax Relief example Eligible R&D Costs 1,000,000 Grants 288,000 Net cost of project to company 712,000 R&D tax 1,300,000 Tax 28% 364,000 Net cost to company 348,000

20 Invest NI Wider Innovation Programmes Competence Centres Innovation Vouchers

21 Summary R&D is a priority Health & Life Science/Food 60 projects, 20M Food 30 Projects, 4M

4. Financial assistance for investors: Grants and incentives

4. Financial assistance for investors: Grants and incentives An introduction from the UK Department for Business, Enterprise and Regulatory Reform There is growing interest from international companies