The importance of innovation in value creation is widely acknowledged, benefiting both individual companies and the overall UK economy. It drives economic growth, productivity, and plays a pivotal role in transitioning away from fossil fuels and carbon-intensive practices.
Imagine a person’s hand confidently holding a drone, representing the embodiment of innovation.
Several factors influence a business’s ability to innovate, such as skills, capital, and government policies like tax incentives. However, none are as critical as the company’s own culture, capabilities, and internal systems – all components of its governance. Without a governance framework that fosters innovation, businesses may struggle to seize new opportunities.
Our most innovative clients exhibit distinctive characteristics:
- They invest in activities with uncertain outcomes, where commercial returns are difficult to quantify, and risks of failure are higher than average.
- They possess unique, company-specific skills that may be highly specialized.
- They foster a culture that embraces flexibility, experimentation, and individual decision-making.
- They have a long-term investment horizon, understanding that innovation requires time and patience.
Research and Development (R&D) is the transformative process of turning ideas into fully-fledged products or procedures. R&D tax credits, a government incentive, aim to encourage innovation across various industries. This presents an opportunity for businesses to reduce their corporation tax liabilities or receive refunds from HMRC based on the hours and costs dedicated to R&D.
If you seek long-term financing to support innovation, it is crucial to maintain up-to-date management accounts, provide detailed lists of debtors and creditors, and potentially present current projections. These measures ensure that experts considering your application have a comprehensive understanding of your business’s financial standing.
Unlock the potential of innovation and propel your business forward. Embrace a culture of innovation, explore R&D opportunities, and set a solid foundation for long-term growth.
