Innovation and development of new products or processes can be expensive as it requires significant investment in machinery, materials and manpower.
Many businesses struggle to generate sufficient funding, either through loans or working capital, to meet their required development and innovation costs.
While this can lead to problems down the line, including struggling to remain competitive in their sector, or failing to operate at peak efficiency, where can businesses turn to?
How Can My Business Benefit?
“The good news is that businesses which are investing time and resources in developing or improving their products or internal processes can potentially have access to funding from the Government,” says Linda Eziquiel from RandDTax.
“Qualifying businesses can claim R&D Tax Relief or if loss making, R&D Tax Credit cash payments every year. The funding is claimed as part of filing a routine corporation tax return.”
“Each claim will release extra cash – up to 33% of development costs — back to the business.”
“The scheme is open to any UK registered limited company which has made new or appreciably improved products, or has developed manufacturing or operational processes,” Linda explains.
“The great thing is that this extra money is classed as post tax shareholder funds, so it can be used for any purpose.”
By not claiming, businesses may be missing out on funding available to their competitors, meaning they will have less working capital possibly leading to less competitive products.
Which Industry Sectors Can Claim?
From software firms to ice cream makers, R&D Tax Relief and R&D Tax Credit is open to companies of all sectors. Depending on the size of the business and amount of qualifying work undertaken, the returns can be substantial.
“My largest client is a maker of nano-level imaging technology and over the three years we have worked with them, they have received £933,000 in tax credits — with the latest claim totalling £565,000″
Linda Eziquiel, RandDTax
“Our in-depth experience of claiming UK Government R&D incentives, means we have the knowledge to make robust claims that will not be subject to challenge, saving our clients time while maximising the value they get.”
Any claim must be made within two years of the end of the relevant accounting year, in which the company spent money on qualifying R&D. If the deadline is missed, then the money will be lost.
To discover if your business can claim for your innovation, research and development, arrange a FREE assessment with RandDTax by:
RandDTax has developed a Case Study, in association with Manufacturing Matters Magazine.
The Case Study reveals how RandDTax enabled a bespoke lighting firm to receive half a million pounds of extra funding from HMRC.
To get your copy, please click here.