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This is an annual cashback opportunity that many innovative businesses will be aware of. Even if you have made a claim in the past, there is every chance it can be improved on. This is an additional cash flow benefit that may be especially useful to businesses during the pandemic. You may be eligible for around 200% more than was claimed. How?

Rob Sowden of consultancy Business Cash Enabler advises: “Some businesses have received small amounts via a DIY claim or a claim compiled by their accountant, however, there is almost always additional cash benefit available, based on a detailed technical appraisal of the innovation activities. Receiving something back from HMRC is deemed as ‘success’, often without realising they left a pile of cash on the table.

Business owners/directors should ask themselves:

  • Did our company submit its own claim?
  • Did the person/s assessing the claim fully understand the legislation?
  • Were they aware of ALL qualifying activities, or did they focus on one or two key projects?
  • If our accountant compiled a claim, did they carry out a detailed technical assessment, or did they ask us to write the technical report?
  • In reality, did we do much of the work and then we were charged a fee for the work we did ourselves?
  • Are we confident that if HMRC raise an enquiry that we and/or our accountant can defend the claim?

Of course, HMRC won’t know to point out if you have under-claimed, but they may determine that ineligible costs were claimed and seek repayment of some or all of the benefit received, potentially up to six years later. It’s a fair and most generous scheme but it does have rules.

Much safer to use a specialist claims management provider that assigns a technical analyst to assess all qualifying activities, write up both technical and financial reports and deal with any enquiry handling arising, all as part of a no-win-no-fee model, thereby posing no financial risk or loss to a business.

I have directed many businesses to a specialist provider that assigns a technical analyst and has a record of uplifting average values by 200% on claims already submitted. A free appraisal of claims already submitted is available. If there is nothing else to claim, there is his nothing else to do, and no fee, but it gives peace of mind. In the event that there is more, the provider will only charge its success fee on the additional benefit identified. Nothing to lose, everything to gain. If you haven’t claimed at all and are eligible, then there could be tens of thousands on the table, still within the 2-year claim window. If a year-end is looming, acting well ahead of that is critical to avoid potential loss of an entire year’s benefit.”

To help businesses evaluate eligibility headlines the following questions may be useful:

  • Do you design and make new products?
  • Do you seek to improve processes, services, materials or devices?
  • Do you make prototypes or perform testing?
  • Do you develop software or IT solutions?
  • Have you invested in failed projects or developed products that were never launched?
  • Do you employ any staff with a technical or scientific background?

For more information visit www.businesscashenabler.co.uk

To arrange a free eligibility check email [email protected] or call 07732 627085.

Calling all innovative businesses:

Improve cashflow with government support. Claim back up to 33% of costs incurred on innovation over the past two years.

With uncertainty over revenues and a looming cash flow crisis for many businesses, there may be a welcome cash injection awaiting for businesses in any sector that have been innovating in the past two years.

Many businesses are clearly concerned about the impact the pandemic will have on the future of their business. What they may not realise, is that regardless of their current trading situation, they may be able to claim back a percentage of costs incurred over the past two accounting periods, normally the prior 2 years.

Help may be available via HMRC’s Research & Development (R&D) tax credits scheme, which has granted relief of £26.9bn in tax relief since the scheme began and is much broader in scope than many are aware. The scheme is most popular for an annual cashback, even when a business has been in loss and non-tax paying. A business that incurred costs for unique innovation activities, may be entitled to up to 33% of those costs as a cashback. The average SME tax credit is £53k for one year, often in the form of a cash injection straight to the bottom line, and potentially double that amount for a first time claimant. It could be a lifeline for businesses; it has helped many fund their payroll or other key costs over the years. There is no dictate as to how cash received from the scheme is used and cash benefits are often paid as quickly as one month after a claim is filed.

Some businesses have claimed small amounts via a DIY claim or a claim compiled by their accountant, however, there is almost always additional cash benefit available, based on a technical appraisal of the innovation activities. Now may be the best time ever to check whether the business has been receiving the full entitlement. For a business that has already received benefit, it can pay to have a further review as the amount is often much less than they were entitled to, without them realising it. This invariably happens when businesses believe this claim opportunity is an accountancy work-stream, whereas it is really about technology.

A remote technical appraisal is available during pandemic restrictions, to check eligibility for any registered trading company that has been established for over one year. For more information visit www.businesscashenabler.co.uk

To arrange a free eligibility check send a request to: [email protected]

With uncertainty over revenues and a looming cashflow crisis for many businesses, innovation tax incentives consultant, Rob Sowden, reminds business owners that they may be eligible for a welcome cash injection from HMRC if they have been innovating in the past two years.

Rob advises: “Many businesses are clearly concerned about the impact the COVID-19 pandemic will have on the future of their business. What they may not realise is that regardless of their current situation, they may be able to claim back a percentage of costs incurred over the past two accounting periods, normally the prior 2 years.

Help may be available via the Research & Development tax credits scheme which is much broader in scope than many are aware, most popular for an annual cashback, even when a business has been in loss and non-tax paying. The cashback entitlement is not based on current trading activities, but on costs that were incurred in the past two trading periods. A business that incurred costs for unique innovation activities, may be entitled to up to 33% of those costs as a cashback. With an average SME payout being £53k for one year, this represents a welcome cash injection straight to the bottom line, potentially double that amount for a first time claimant. It could be a lifeline for many businesses.

Some businesses have claimed small amounts via a DIY claim or a claim compiled by their accountant, however, there is almost always additional cash benefit available, based on a technical appraisal of the innovation activities. Now may be the best time than ever to check whether the business has been benefiting from the maximum entitlement.

A remote service is available to check eligibility for any registered trading company that has been established for over one year.”

Business Cash Enabler provides a free service to businesses to check eligibility for innovation tax incentives.

For more information visit www.businesscashenabler.co.uk

Written by: Business Cash Enabler |

Rob Sowden of Bournemouth-based consultancy Business Cash Enabler reports an increase in Dorset companies benefiting under the government’s Research & Development (R&D) Tax Credits scheme.

“Many more Dorset-based businesses are now receiving benefit under this generous scheme, designed to reward unique innovation activities in business. For many years the scheme has seemed too good to be true to many companies who have not applied for the credit or cashback, due to many myths and misinformation around the scheme. Many businesses have tried to self-assess whether they qualify and have assumed they don’t; many have even been told by their professional advisors that they aren’t eligible, when in reality they are. One myth is that a business has to be profitable or has to be paying corporation tax to be eligible. Some find it hard to believe that they can receive an annual cash payment from HMRC when they are loss-making and not tax-paying. Reality is, they may receive a higher cashback payment than if they were profitable, because the scheme is based on costs incurred, not on revenue or profit. Typically, an SME can get back 33% of the amount they’ve spent on qualifying R&D.

“For the past five years I have been increasing awareness of the government’s innovation tax incentives. The R&D tax credits scheme was introduced back in 2000/01, yet it still seems to me that we are just at the beginning of awareness, even though £26.9bn has paid out since inception, it is still estimated that around 80% of eligible companies have not claimed or have under-claimed. Some clients have been assisted to claim by their accountant as they are in an obvious sector such as engineering or manufacturing. Interestingly though, many businesses that are not in these classic innovation sectors are also benefiting from the government’s R&D cashback, notably digital and IT in Dorset, but no sector is exempt if a business has truly innovated.

“The government paid out £4.3bn in the last reported year, with an average SME claimant receiving £53k annual benefit. Many companies that have previously claimed have received small amounts, £10k, £20k, £30k, when they may have been entitled to 2, 3 or 4 times that amount, often a healthy six-figure cashback. Under-claiming happens when the claim process is mistaken for an accountancy workstream, but it really requires a technical appraisal, combined with specialist knowledge of the legislation. Maximised claims are based on a technologist-led approach to ensure all eligible innovation activities are included in a claim and importantly, that projects that aren’t eligible haven’t been included, avoiding a potential HMRC clawback. It is possible to receive a claim shortfall for the prior two accounting periods, which can bring in an unexpected cash injection to a business – but there is a strict HMRC deadline for the prior two accounting periods, claim it or lose it!”

Business Cash Enabler provides a free service to businesses to check eligibility under the HMRC R&D tax credit scheme and advises on monetising intellectual property (IP) such as through the Patent Box tax relief scheme.

For more information visit www.businesscashenabler.co.uk or to arrange a free eligibility check send a request to: [email protected]

Written by: Business Cash Enabler |

The subject of protecting Intellectual Property (IP) can be a turn-off for many businesses as it sounds complicated, involving expensive lawyers. As a result, many businesses have not protected or realised commercial value from their IP.

Silicon South supporter, Business Cash Enabler, has launched a service to help demystify the jargon around IP and help advise a business if they may be able to realise commercial gain from their hard work in developing IP.

This service can bring considerable commercial benefit to qualifying businesses, as consultant Rob Sowden explains:

“I am delighted to be able to offer this service to businesses in Dorset and beyond, it is a natural fit with the research and development (R&D) tax credits claims management service I have been helping companies with for several years. Claiming R&D tax credits is only part of the financial reward for innovative businesses. Many companies have not realised the commercial potential of their intellectual property (IP), often seeing IP as merely something to protect; however there are considerable financial gains to be derived from IP.

“With a simple patent, found in the R&D that a business performs, there could be big savings on corporation tax, under the government’s Patent Box relief scheme, which reduces corporation tax to just 10% on profits arising from global revenues from patented products or processes. Ixn addition, an IP audit can identify and value IP as intangible assets which can represent around 80% of corporate value.”

A few key considerations for any business to which this may apply are:

  • Have you made an R&D claim but never considered patents?
  • Are you put off because of legal costs?
  • Are you looking to raise funds?
  • Do you want to maximise opportunities overseas?
  • Could a patent look good in the shop window for funding or exit purposes?
  • Can you reduce your tax payment thanks to IP?

“Businesses shouldn’t be intimidated by the legal and academic jargon surrounding IP. Business Cash Enabler works with experts that combine scientific and technical knowledge with particular expertise in IP strategy, whilst ensuring that a business is fully using the tax saving incentives that are available to innovative UK businesses. This service ensures monitoring of the legal, technical and financial developments of tax relief schemes relating to IP so that a company will always have advice that is up-to-date and reflects the best of current practice.”

Business Cash Enabler provides a free service to companies wishing to check their entitlement for innovation tax incentives.

www.businesscashenabler.co.uk