During these difficult times cash flow is of utmost importance for a business. At Haslers we are always working with clients to identify options to generate cash flow with minimal disruption.
Research and Development Tax Credits.
The government offers incentives in the form of Research and Development (R&D) tax credits. The tax credits are intended to incentivise companies to work on innovative projects. They are therefore a valuable source of cash for companies that are already conducting such projects or planning to do so in the future.
The qualifying conditions for claiming R&D tax credits mean that claims can be made in nearly every sector including:
- wholesale and retail
- Admin and support services
The relief is available to companies who are developing new products, processes or services; or enhancing existing ones. The company can then receive either a cash payment or a reduction in their corporation tax. If it is the company’s first claim you can typically claim R&D tax relief for your last two accounting periods. The average first claim is circa £40,000.
We are happy to conduct a free telephone review to help identify qualifying projects in your company. We can also work with you to ensure that you receive the benefit of R&D Tax relief as soon as possible this can include:
Record Keeping – Starting Early
To maximise a claim it is preferable to record projects in real time. We can work with you to prepare the records required to submit a successful claim before the company’s year end in order that it can be submitted at the earliest possible date.
Accelerating Repayment Date
It is only possible to make an R&D claim after the accounting period has finished. This can lead to having to wait for months in order to receive the benefit of qualifying project and a delay in receiving thousands of pounds from the government. If cash flow is tight it maybe worth considering either lengthening or shortening an accounting period.
Your contact at Haslers will be able to consider the implications of changing the company’s accounting period.
Are you Eligible?
Companies in every sector potentially qualify so please contact us to arrange a call with one of our R&D experts.