Patent Box and R&D tax credits – how they can work together for your business

2 min read

If you’re interested in helping your business grow and conquer the competition, it is important that you understand how to make use of the Patent Box and R&D tax relief schemes, as well as seeing how they can work together for your companies benefit.

Before we begin explaining how to make use of the Patent Box and R&D tax relief in conjunction with each other, it is important for you to find out if your business is eligible for either.

Find out if you qualify for Patent Box relief and R&D tax credits by taking our simple eligibility test here. If you have any questions regarding your companies eligibility, our team of experts are available for a free phone consultation which you can book here.

If you do qualify, there are a huge number of benefits you could enjoy by applying successfully, however, qualifying isn’t enough to get money back from the government, you need to negotiate the application process first.

As a business investing money into the research and development of products or services in the fields of science and technology, you are immediately eligible for R&D tax relief. However, if you also own the patent licences for the very same products or services, you can also profit from a corporation tax rate of only 10% on the commercial gains from the respective patents.

Recoup a proportion of your investment back

Simply put, the money that your business has invested into R&D could be returned AND the money that you earn from the final patented product or service could be increased by applying corporation tax to the profits they earn.

If your business has been spending money on R&D and has owned patents on a number of products/services and has never applied for Patent Box relief or R&D tax credits for a number of years, your company could enjoy a huge boost.

In one fell swoop, you could reduce the amount of tax you are paying on the profits of multiple profits AND receive a direct reimbursement of money invested in R&D. Just imagine what that could do for the health of your business.

Move your business forward

From being able to invest in state of the art equipment to acquiring your competition and solidifying your position as a market leader, the question really should be, ‘Why wouldn’t you apply for Patent Box relief and R&D tax credits?’

Businesses like you own, the ones that innovate and drive science and technology, are critical to helping the UK maintain its position as a global leader in the sector and we want to do everything in our power to help you do that.