What Is A Business Grant In The UK?
A grant specifically refers to a sum of money provided to businesses in order to grow or cover costs. You may receive a government grant, or a form of business funding from a private organisation or trust. Different types of businesses will be eligible for varying grants, which will depend on your size, sector and work undertaken.
The Benefits Of Business Grants
No Need To Pay Back!
The main benefit of a grant in business is that it does not need to be paid back. This means you can be rewarded the money and spend it without the worry of hiking up funds to be returned. You also don’t need to give up equity in exchange for this money, meaning you are stress free of being tied down in the long run. For business finance, this is key to expanding your business without the concern of having to pay back the money within a given time frame.
Pushing For Greener Business
Grants are also often awarded to businesses for improving current methods used across their sector, including designing more environmentally-friendly processes. This encourages companies to create a sustainable business as they can be awarded with money for doing so; whether that be saving energy, creating green products, or pushing more sustainable ways of working.
What Do Business Grants Include?
R&D (Research and Development) Tax Relief
This type of grant was designed to reward businesses with a sum of money for their investment in innovative projects. The incentive is created as both a small business grant and for larger organisations. To qualify, you may have developed a product or service that improves an existing one, and overcome scientific or technical uncertainty.
Here is a list of costs you can claim:
- Subcontractor costs
- Consumable items
- Tests and trials
If successful, this claim can then be made through a cash credit payment or reduction in your corporation tax liability. Where the tax has been already paid you can receive a rebate for your expenses.
Innovate UK Grants
Innovate UK supports businesses leading innovation. This was created to grow innovation in the UK economy and to encourage businesses to work with other commercial and research organisations.
Supporting all sectors, they help businesses develop new products and services as a delivery body for the government’s innovation strategy. There are also innovation vouchers available for SMEs or start-ups, who can claim upto £5,000 towards the cost of expert advice.
If your business is taking on apprentices to train, then it is likely you will be eligible for a grant to help fund those employees. If you do not need to pay the levy, the government can pay 95% of the funding band maximum. If you do, the government will add 10%.
You are also able to apply for an incentive payment of £3000 for new apprentices to join your organisation.
There are a few different grants available when starting a business, rather than taking out a business loan. You can also take a look at your regional growth hub to find business support led by The LEP. Some organisations providing grant opportunities for start-ups in the UK include Princes Trust and Simply Business.
How To Apply For A Grant In The UK
For some grants the application processes can be time consuming, however the benefits well outweigh the time spent for the substantial money you may be eligible to receive.
Below are a few steps to get you started when applying for a grant in the UK:
- Write out a detailed business plan
- List out innovative or unique projects you have undertaken
- Write how you will invest the money that you receive
- Find professional, experienced funding specialists to help.
Partner With Veritas Noble For Your R&D Claim
We are a leading business specialising in securing R&D tax credits for businesses from a range of sectors. If you believe you have completed qualifying activities or are unsure whether you may qualify, our team is on hand to help.
Whether you are completely new to R&D and need some guidance, or are familiar with the opportunity and looking to start the claim process, we can help you navigate smoothly through the funding process. Our team works with clients from industries including construction, manufacturing, recycling and technology to name a few.
You can book a call to discuss your grant opportunities further by emailing us at firstname.lastname@example.org. We can then understand your business needs and see whether you are eligible for an R&D tax claim.