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