Increases in UK productivity and turnover predicted for 2018
Despite a challenging 2017 for many UK businesses, the outlook for 2018 seems positive, with almost 65% of businesses predicting growth in 2018 - according to R&D tax credit company, MPA Group who made the statement following a consultation of select businesses.
Over 78% of the UK manufacturing, engineering, IT and life sciences businesses polled said they expected to see an increase in turnover and improved productivity this year.
However, when questioned on funding this growth, half of those polled said they would invest profits, while 57% believed they didn’t need any additional funding and only 28% are planning on applying for R&D tax credits, despite 29% of businesses identifying cash flow as being the biggest barrier to achieving their aspirations.
Commenting on the consultation findings, Mike Price, director at the MPA Group, said: “While it’s encouraging that business outlook remains positive for the coming 12 months, further supported by the strong focus on innovation outlined in the latest Autumn Budget, it is also important that businesses look at all the ways they can successfully fund their growth. R&D tax credits offer a valuable cash injection which can be reinvested to support new business ventures, investment in equipment, or help to employ a greater number of skilled staff.
“Recent figures from HMRC reported a 20% increase in the uptake of R&D tax credits in 2015/16 compared to the previous year. Yet, for thousands of businesses it remains a largely misunderstood, or even unknown scheme. It is therefore important that those businesses looking at growth in 2018 seek specialist advice; working with a tax credit specialist to identify and maximise qualifying R&D activity, but also one with the proven sector technical expertise and a clear understanding of HMRC requirements in this complex field.”>
Source: Control Engineering Europe - All Articles