Can R&D Tax Credits and Grant Funding work together?

Grant funding and Research & Development (R&D) Tax Credits are both amazing ways in which the government has incentivised tech innovation in the UK.

These two systems offer support at different ends of the research & development (R&D) process, so it’s important for founders to distinguish their benefits and find out which route would best benefit their business.

But why choose when you can have both?

This article will outline what both schemes are, what they offer, and how you can take mutual advantage of them.

Grant Funding

In the early stages of a startup’s journey, well-formulated, feasible products and services can be selected for grant funding opportunities.

Grant Funding is government-provided capital that can be spent on virtually any business cost (excluding sales & marketing) that will help set a startup’s plans into motion.

Instead of founders pouring their own money into their project, securing Grant Funding spurs them to take the plunge, by reducing capital risk and providing an upfront financial safety-net.

The biggest draw to government grants is that the money on offer is:

· 100% guaranteed upon success;

· Totally free and non-repayable;

· Not at risk of diluting your corporate equity.

That’s right, you can avoid the hang-ups of other funding routes, such as racking up interest from debt funding or sacrificing equity of your startup.

So why doesn’t every small business just use Grant Funding instead?

The truth is that these perks incite fierce competition, and more startups than ever before are now applying.

It’s becoming increasingly difficult to get selected. That’s why grant-writing experts, such as our partners at GrantEd, have built an all-in-one grant consultancy platform, which maximises applicants’ chance of success.