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Frequently asked questions
Q&A
for Potential Applicants
What
is the aim of Grant for Research and Development?
Grant
for Research and Development aims to encourage small businesses
to carry out research and development that leads to technologically
innovative products and processes.
Who
makes the decisions on applications?
Regional
Development Agencies (RDAs) deliver Grant for Research and
Development in England and decide which applications will be
supported in their region.
You
must send your completed application and project proposal to your
RDA.
Please
note that there is no automatic entitlement to the grant.
Grant for Research and Development is discretionary and there is no guarantee that you will be offered
a grant, even if your business and project is eligible.
RDAs
appraise applications against national selection criteria to assess
the suitability of the project in terms of technological innovation
and value for money to the taxpayer. Details
of the selection criteria can be found in the Guidance
Notes for Applicants. RDAs may give priority to
applications that are aligned with Regional Economic Strategies or
other Regional goals. Details of priorities in your region are
available from your RDA.
When
can I apply?
Your
Regional Development Agency will be able to advise you
of any closing dates for applications in your region.
What
do I need to do to apply?
You
will need to complete an application
form and prepare a project proposal in support
of your application.
Your
project proposal should clearly set out your business case for
support. The proposal should cover for example, the level of
technological innovation, the technical risks to be overcome, the
market need, the route to market, your skills, and the need for
support.
The
Guidance
Notes for Applicants will help you through the
process of preparing the proposal.
Applications
should be submitted to the Regional Development Agency responsible
for the area where you intend to carry out the project.
Applications
received after any deadline which has been set, even if clearly
postmarked earlier, will not be accepted.
Who
can I go to for specific advice about the Grant for Research and
Development or to help me prepare a project proposal?
You
can get advice on Grant for Research and Development and general
business matters from your local Business Link.
Call 0845 600 9 006 or visit www.businesslink.gov.uk.
Business
Link can advise you on the type of support that best suits your
needs and can put you in touch with someone who can
help you prepare your project proposal.
May I claim
the R&D tax credit as well as my Grant for Research and
Development?
Research Project
grants and Development Project grants (including Exceptional Projects)
are notified State Aids, which means you cannot claim SME
R&D tax credits for a project for which you have also received one
of these grants. However, you can claim the 'large
company' R&D credit for the total amount of qualifying R&D
you do, including the R&D funded by this grant.
For example, if your
project involves £100,000 of 'qualifying expenditure' (staff
+ consumables/materials etc.), of which £35,000 comes from a
Grant for Research and Development and £65,000 from your
company, you can claim the large company R&D tax credit on
the full £100,000. You cannot claim the SME R&D tax
credit for the project.
Micro Project grants
are "de minimis" State Aids, which means that you can
claim the SME R&D tax credit for your qualifying expenditure on
the R&D not covered by the grant and you can claim
the large company R&D tax credit for the amount of the Micro Project
grant spent on qualifying expenditure.
For example, if your
project involves £12,000 of 'qualifying expenditure' (staff
+ consumables/materials etc.), of which £6,000 comes from a Micro
Project Grant for R&D and £6,000 from your company,
you can claim the SME R&D tax credit for the £6,000
you invested and also claim the large ompany R&D
tax credit on the £6,000 from the grant.
Details
of the R&D tax credit schemes are available from
http://www.hmrc.gov.uk/randd/index.htm
Is there a national framework through
which Grant for Research and Development is delivered by the RDAs?
The national framework is set out in the Guidelines
for Officials
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