News
Applying for Research & Development tax credits could help your cashflow
24 Jul 2020
Having cashflow to be able to do that is a critical tool to help us get through this current crisis.
As the old saying goes; Cash, is king. That has never been more relevant than it is now. Being able to pay staff and suppliers, as well as yourselves as business owners, is critical.
The chancellor has recently announced unprecedented support for UK businesses, but the Government hasn’t necessarily advertised some of the benefits of tax reliefs that may already be available to you.
Research & Development (“R&D”) tax credits
R&D tax credits are a form of tax relief available to limited companies that are undertaking qualifying projects.
The chancellor, Rishi Sunak, has decisively put R&D front and centre of the future of the UK economy, targeting public and private expenditure on R&D of 2.4% of GDP by 2027.
This is a tax relief that many businesses do not fully utilise. Having spoken to numerous business owners, many believed from the terminology that this wouldn’t be an option for them. Let us be clear; R&D is not all about scientists in lab coats peering through microscopes, it is much, much broader.
Have you undertaken:
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Development of new and/or enhancement of existing products
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Changes to internal processes (perhaps to meet new regulations)
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Introduction of new services
If so you may be undertaking a qualifying project.
So how can WR help?
Clearly, for whatever reason, business owners are still unaware of the potential cash benefits that are available by making R&D expenditure tax credit claims. As it has always been, our role is to break this terminology down, and explain the meaning and reasoning behind R&D tax reliefs in simple, plain English. Also, our job is to explain how the relief works and how this will apply to you.
In these extremely testing circumstances we all find ourselves in, time is precious. We can guide you through the claim process making sure that this is time-efficient and commercially viable for you.
Have WR done this before?
During the year to 31 March 2020, through a collaborative approach working alongside our clients, WR has identified R&D expenditure of over £4M, resulting in tax benefits totalling in excess of £1M. During these uncertain times, we are keen to make sure even more business owners are aware of the potential benefits available to them.
Like you, WR does not know how long this uncertainty will continue. WR has the technology in place so that in the short term at least, face to face meetings can be avoided and provided you have access to your financial data, R&D claims can be completed through video conferencing, telephone and email.
If you would like to discuss please contact your usual WR Service Delivery Manager in the first instance to discuss or visit our Contact Us page.
