It’s a popular myth that you cannot claim UK Government’s Research & Development (R&D) tax credits if you have received grant funding. This is not strictly true, the grant funding will change how much you can claim under the R&D schemes, but the receipt of grant funding does not rule you out from claiming R&D tax relief or credits.   Many innovative and pioneering companies, especially those that are under five years old, have to secure a mix of funding from different sources in order to survive and grow. Both grant funding and R&D tax relief or credits are important sources of funding, along with equity/share investment and loans, so it’s important to get the facts straight. The key points to keep in mind are listed below.     There are two R&D tax relief/credit schemes: RDEC (Research and Development Expenditure Credit) which is for large companies – that is companies or groups of companies with over 500 employees in the … [Read more...]