In the current economic climate, considering all potential sources of finance and short-term cash is key.
One option to explore is Research and Development (R&D) tax credits, which are available for those working on specific projects to make an advance in science or technology. You can read more about whether you may be eligible here. For eligible companies, key features of this are:
- Retrospective ‘subsidy’ of up to 33.3% of qualifying expenditure identified i.e. the company has already incurred the costs against which the finance is available.
- Accelerated processing by HMRC; in most cases, the cash payment is received by the company in just over one month from the filing of the claim.
- Relatively straightforward paperwork; unlike grant funding, the application is ‘free-form’, through an amendment to the company’s self-assessment tax return.
For these purposes, R&D encompasses a much wider range of activities than most companies realise, and it does not just relate to the development of new products. If your company has previously undertaken technically challenging work, you should explore whether you are eligible for R&D tax credits.
Please see our factsheet for further details on this opportunity and please do call us to discuss or send us an email.