The easiest way to fund your next business investment

January 17, 2022
Stuart Totterdell

Stop asking how, decide now

Many of the companies we work with, (especially in the SME sector), are naturally head down, focussed on the business at hand, carefully managing cash flow and looking to achieve incremental growth where possible. The idea of investment in capability can seem a luxury reserved for ‘other’ businesses while you spin those plates.

So, it’s no surprise that many are still not familiar with the benefits available from R&D tax credits. A subject that raises eyebrows and audible clicks of the brain when we explain what it is and how it works.

Is this real?

Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation and have been around since 2000. They essentially act as a source of cash for companies looking to grow through investment in business capability.

In many cases, if you are a UK limited company and have spent money on qualifying research and development, you will likely be able to claim for the incentive which can be considerable and a credit against your corporation tax bill. In fact, some companies can end up with a negative corporation tax bill depending on their level of investment.

Surely this is for big companies?

Back in 2000, it was originally established for SME’s and continues to focus on this sector with separate schemes for larger organisations. So don’t assume anything, it's just as relevant to you however big you are.

But my business doesn't perform R&D!

Another common comment, but research and development doesn’t mean you need a lab coat and be developing bleeding edge pharmaceutical products. It’s equally applicable to companies developing any new products, processes, or services. In fact, many of the systems we produce can qualify for R&D and we use this incentive ourselves for our own business.

We are not tax advisors

Now let’s get one thing straight; we are not tax advisors and as always, the devil is in the detail, but we always say this often-unknown opportunity for investment should be something to consider.

Whether it supports your decision to invest this year, or bring more capability forward from your future, a successfully application provides you with the opportunity for accelerated growth and gearing for your business.

What’s next?

Having experience with our own projects and helping customers with theirs, we can work with you to discuss the options together with our own recommended advisors and see how you get more from your investment.

Let's discuss your requirement

Leave your phone number or email address with us and we'll get back to you to discuss how we can help you with your next project.

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