Apart from grants, with their relatively long lead times, conditions and uncertain application outcomes, there are few sources of cash that a newish company can get their hands on. One such is the Research and Development Tax Credit aimed at helping innovative companies.
The scheme is an incentive for firms to increase their R&D as this is vital to UK plc’s future, a future you are helping to build. So it’s time to collect your reward.
New businesses in the UK are far more favoured than their cousins across the Atlantic in this regard. In the US companies have to be making taxable profits before being eligible for the federal tax relief. Here in the UK the company does not have to be profitable to benefit, just be able to demonstrate that they are a going concern with a future.
In the US there have been several unsuccessful attempts to get the tax made available for newer and struggling companies, the latest failure being in 2013. Here the government sees the upside of the benefit to UK plc through your endeavours – and wishes to encourage you further.
Here’s how it works for you and your company. Find out if you are doing things that can be claimed – here’s how to check. Ask yourself these three questions.
1. Do you develop innovative products or services?
2. Do you use science and technology to do it?
3. Is there an element of uncertainty about the outcome of your innovative endeavours?
If you have answered these with ‘probably’ or ‘yes’ then it is time to take some action.
You may have been told you can’t claim or that the process is complex, expensive and lengthy. By talking to a specialist you will discover the truth and avoid most of the work whilst maximising the value of your claim. A good specialist will only charge a small percentage of the results achieved. Remember, this is money that you would never have seen, so it’s worth paying out a small part of the gain, isn’t it?
And when you make your first claim you can claim for up to two past tax years. Does your financial year end in the next four months? If so then time is of the essence because once the key date passes your claim falls.
Tony Lord, 08450 17 97 37