Engineering Grants and R&D Tax Credits

Unlock Funding for Engineering Innovation in the UK

 

Bringing innovative products to market involves complex design, prototyping, and testing phases — all of which can be eligible for government funding. Whether you’re advancing new materials, mechanical systems, electronics, or hardware integration, both Innovation Grants for Product Development and R&D Tax Credits for Engineering can help reduce costs and accelerate delivery.

 

FI Group supports engineering-led businesses across the UK to secure public funding and make the most of their investment in innovation. From advanced manufacturing to green tech and robotics, our technical and financial consultants help you unlock support tailored to your development roadmap.

 

Innovation Grants for Engineering and Product Development

 

Public grants are available to support early-stage feasibility studies, prototype development, and product commercialisation. These are typically offered by Innovate UK, Horizon Europe, and regional development bodies.

 

Common Areas of Grant Funding:

  • Engineering design and rapid prototyping
  • Robotics, sensors, and control systems
  • Advanced and additive manufacturing
  • Sustainable materials and circular economy
  • Electronics, IoT, and embedded hardware
  • Medical devices and life science instrumentation

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Innovation Grants for Engineering and Product Development

 

Public grants are available to support early-stage feasibility studies, prototype development, and product commercialisation. These are typically offered by Innovate UK, Horizon Europe, and regional development bodies.

 

Common Areas of Grant Funding:

  • Engineering design and rapid prototyping
  • Robotics, sensors, and control systems
  • Advanced and additive manufacturing
  • Sustainable materials and circular economy
  • Electronics, IoT, and embedded hardware
  • Medical devices and life science instrumentation
Current and Recurring Grant Competitions:
Current and Recurring Grant Competitions:
  • Innovate UK Smart Grants: Funding for high-potential engineering innovation
  • Manufacturing Made Smarter: Targets process automation and digital manufacturing
  • EUREKA Eurostars: Supports cross-border innovation in SMEs with a product development focus
  • SBRI (Small Business Research Initiative): Challenge-led funding from public bodies

FI Group helps identify suitable calls, prepare competitive applications, and track timelines and compliance.

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Current and Recurring Grant Competitions:

Engineering

Latest Grants

Explore the latest innovation grants designed to support engineering-led research, product development, and advanced manufacturing across the UK.
A Guide to R&D Capital Allowances

A Guide to R&D Capital Allowances

Additional Information Form (AIF): Help Guide

Additional Information Form (AIF): Help Guide

Engineering R&D Tax relief

R&D Tax Credits for Engineering Innovation

 

Product development that involves technical challenges, complex design iterations, or integration of new components is likely to qualify for R&D Tax Relief.

 

Typical Eligible Activities:

  • Developing new mechanical systems or modifying existing ones
  • Overcoming design tolerances or performance uncertainties
  • Building and testing functional prototypes
  • Creating bespoke software or firmware for hardware integration
  • Investigating failure modes, material performance, or scalability

 

R&D Tax Schemes:

  • SME Scheme: Offers enhanced deductions and cash credits for qualifying engineering costs
  • RDEC / Merged Scheme: For larger companies or where external grant funding is received
  • R&D Intensive Support: Higher credit rate for loss-making SMEs with high R&D intensity

FI Group ensures that your engineering team’s work is accurately documented and translated into robust technical and financial claims.

What Makes a Product Development Project Eligible?

A project may qualify for R&D Tax Relief or grant funding if it:

  • Aims to create or improve a product, process, or material in a way that overcomes scientific or technical uncertainty
  • Requires iterative testing, simulations, or modelling
  • Cannot be easily deduced by a competent professional
  • Advances capability beyond what is publicly available or standard in the industry

Our PhD-level engineers and sector specialists will review your project and match its scope against HMRC and funding body criteria.

Combining Grants and R&D Tax Credits

Companies can apply for both grants and tax relief, though interaction rules apply:

  • If your project receives a Notified State Aid grant, you may need to claim under the RDEC or merged scheme instead of the SME scheme
  • FI Group can help you assess eligibility, separate qualifying costs, and optimise your claim value across both channels

We offer proactive planning to avoid compliance pitfalls while maximising your available support.

Why Work with FI Group for Engineering Innovation Funding?
Why Work with FI Group for Engineering Innovation Funding?
  • Multidisciplinary teams with deep knowledge of mechanical, electrical and systems engineering
  • Over two decades of experience managing R&D tax and grant claims across complex product cycles
  • Local teams in England and Scotland supported by a global network in over 20 countries
  • Integrated technical and financial claim preparation for both grants and tax relief
  • Industry-leading HMRC enquiry success rate due to detailed and compliant submissions

Whether you’re designing lightweight components, developing renewable energy tech, or integrating sensors into new systems, we know how to structure claims that reflect your innovation.

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Why Work with FI Group for Engineering Innovation Funding?

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