The key to using innovation grants and research and development (R&D) tax credits together is careful planning. They are not mutually exclusive but their relationship can be complicated. So, getting an expert on your side is the best way to optimise your future position.
If you are a fast-growing, innovative business, you need as much cash as possible to propel your projects forward. You might have applied for, or will be in receipt of, grant funding to help finance your research and development.
A common misconception is that grants and R&D tax credits cannot be used together. If you’re grant funded and looking for additional sources of funding you should, without exception, consider R&D tax credits. R&D tax credits can help you grow without diluting your equity.
The rest of this article will explain the relationship between these two sources of funding, and how grants and R&D tax credits can work together to best effect.
