When it comes to manufacturing, around every corner is an opportunity for new goods and methods to catalyse corporate growth. What’s more, the future of manufacturing is primarily digital. With automation and robots, AI and smart technologies transforming the industry into a productivity and sustainability powerhouse. In this post, we look at the funding options and grants available to UK manufacturing companies. This may help fuel future innovation and help your business finance it at little or no cost to you.
Manufacturing Grants In The UK
You might be thinking, “What manufacturing grants do I have access to?”. In the United Kingdom, there are a variety of government grants for manufacturing as well as manufacturing business grants. These, all of which are intended to assist the industry develop and innovate.
Innovate UK Competitions
Innovate UK offers a variety of financing ‘competitions’ accessible to SMEs. So, it’s worth checking in on a frequent basis to see whether any of the cash is applicable to the manufacturing industry. These contests are open to UK-based companies or R&D organisations who are working on innovative initiatives and require assistance in developing them. Innovate UK smart grants, for example, allow businesses to apply for a share of up to £25 million to support innovative and financially viable R&D initiatives.
Manufacturing The Future
Manufacturing the Future is a research award. It is open to UK higher education institutions, research council institutes, UKRI-approved independent research organisations, and NHS authorities. Furthermore, the awards are meant to support engineers and physical scientists who wish to apply their knowledge to difficulties facing UK manufacturing. Such as, sustainable manufacturing, digital manufacturing, and novel industrial systems.
Government Manufacturing Grants
The UK government website offers a wide range of funding and assistance for businesses in various industries. This includes grants, loans, equity, and recognition prizes. Many are locally targeted, therefore, allowing companies to see what is relevant to them depending on their location. For example, the Manufacturing Growth Programme provides a manufacturing expansion manager as well as money. These will assist SMEs in the manufacturing industry with their growth. This assistance is accessible throughout the West Midlands, Yorkshire and the Humber. As well as sections of the East Midlands and the South East.
Manufacturing companies that collaborate with universities on research or other projects can apply for government subsidies. For instance, the Higher Education Innovation Fund, the UK Shared Prosperity Fund (UKSPF), and the Levelling Up Fund. These are intended to help universities collaborate with existing and new partners in the corporate and governmental sectors on research and innovation, skills training, and business assistance.
Research And Development
HMRC’s R&D tax relief scheme is a government incentive that rewards businesses for investing in innovation with a cash payout or a decrease in corporation tax. If a company has created new or improved current goods or processes that have resulted in a technological advancement in the manufacturing industry, it may be eligible for R&D tax credits. During the course of producing these initiatives, the company must have met scientific or technological uncertainties that were either resolved or sought to be resolved. Small and medium-sized enterprises (SMEs) can claim up to 33p for every £1 spent on eligible R&D activities.
The patent box regime is a type of corporation tax relief offered by HMRC. It is intended to encourage businesses to maintain and commercialise intellectual property (IP) in the UK. It enables businesses to use a reduced corporate tax rate to earnings derived from patented innovations and certain other intellectual property rights.
The patent box, like R&D tax credits, is a tax incentive that encourages innovation. Profits generated by patented innovations can be taxed at a lower rate of 10% rather than the regular rate of 19% for corporations subject to corporation tax.
Capital allowances allow commercial property owners to claim tax breaks on eligible capital investments. This includes portable objects known as “plant and machinery,” as well as immovable elements embedded inside the property and deemed to be part of the structure.
R&D capital allowances (RDAs) can be claimed for R&D projects if your company incurs capital expenditure for qualified R&D operations. Tax relief of 100 percent can be claimed on eligible expenditure. This includes the cost of acquiring machinery and other assets utilised in R&D activities. As well as the cost of providing facilities to conduct R&D in (buildings), among other things.
How AIM Internet Can Support Your Manufacturing Business Growth
AIM Internet is a team of specialists, seasoned company growth experts, and talented account managers. Moreover, we work with forward-thinking UK companies to find applicable grants for their manufacturing and engineering businesses.
Furthermore, if you’d like to learn more about what grants are available to you then contact Sarah at firstname.lastname@example.org or call her on 07816071112. If you found this blog useful, why not take a look at a previous one: The Best Marketing Strategy For A Manufacturing Company