Digital print business receives £750k through tax credits
The day you discover you’ve just received £750k cash back from HMRC must be an amazing day for anyone, but it’s even sweeter when realise you haven’t done anything more than just run your business for the past 10 years.
Many companies will have been taken advantage of the government grants or loans available during the Coronavirus. However, an annual cashback for innovative businesses has been available for the last 20 years, and has the added advantage that it doesn’t have to be paid back.
Rob Sowden, innovation tax incentives consultant operating from Bournemouth, reports on the success of the scheme for this business:
“The consistency of the government support via the Research & Development (R&D) tax credits scheme is really showcased with this business. The scheme was introduced in 2000/01 to reward companies for innovation, to ensure the UK remains a thriving and rewarding place for businesses to trade in. Although we can’t name the business in question, it received a consistent average in excess of £75k cashback annually for a decade. This cashback is not taxed again, it goes straight to the bottom line. Many businesses and their advisors often associate the R&D tax credit scheme with sectors such as manufacturing, engineering, pharmaceutical, etc, yet this business in the sector of commercial printing highlights that a business in any sector can obtain this valuable cashback.
A trading company that carries out any form of unique innovation may qualify for a year-on-year cashback from HMRC under this very generous scheme. A first time claimant company can claim back two accounting periods. Many first-time claimant companies I work with receive a six-figure cashback for those two years, money they didn’t know was there for them. A business does not have to be profitable to get this cashback, in fact a loss-making company can obtain an enhanced cashback, up to 33% of qualifying costs can be rebated. Qualifying costs consist mainly of staff costs and/or costs incurred by 3rd party contractors for any innovation work, as well as certain material costs and utility costs. Some businesses have claimed and received small amounts, much less than they were entitled to, but may be eligible for an uplift payment. Many businesses in the digital sector – software developers, IT providers, Big Data service companies, Telcos, managed service providers, systems integrators and more can often qualify for year-on-year cashback with innovation tax incentives”.
There’s more information on this news release on the Dorset Chamber website. Innovation Cashback
Otherwise get more information at www.businesscashenabler.co.uk or call Rob Sowden on 07732 627085 – and quote the promo code: SSRSRD for a free consultation about your eligibility to claim this tax break.