Patent Box scheme is hailed by Stafford design company boss as boost for innovation
The managing director of a Stafford design business has welcomed a new scheme to encourage companies to be more innovative.
The Patent Box, being introduced in April, will enable companies to apply a lower rate of Corporation Tax to profits earned after April 1 from its patented inventions and certain other innovations.
Haughton Design managing director David Mills said: "It is great to see a scheme which encourages companies to be more innovative."
He said many of his clients would benefit from the scheme.
"With an uncertain economy, lower manufacturing output but booming stock market, companies continue to be cautious.
"This scheme increases rewards from the financial risk involved in new product development and should help reinvigorate the manufacturing sector.
"Everyone is keen to keep manufacturing in the UK, so encouraging companies to be innovative and create new products will ensure a much healthier economy and prosperity for us all," he added.
Mr Mills said innovation had always been one of the UK's strengths and a vital factor to ensuring its return to economic prosperity.
With continued economic uncertainty business investment in research and development is low and likely to suffer yet further contraction.
He said a recent report by the Engineering Employers Federation had suggested that in order to generate a more balanced UK economy, companies should look to bring new services and products to market.
Continuous focus on developing new products, services and processes would drive productivity and sales allowing the UK to catch up with competitors such as Germany and the US.
"Innovation is a critical component of economic competitiveness. Firms that invest in innovation grow faster and are more productive.
"R&D tax credits are the single largest Government support for business investment in R&D and continue to be a key driver of innovation.
"They allow companies to deduct qualifying expenditure on R&D when calculating profit for tax purposes," he added.
Haughton Design is based at the Business Innovation Centre, Staffordshire Technology Park, Beaconside.
