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]