Claiming R&D Tax Credits is a quick and easy way for businesses to inject some extra cash. We are strong advocates of this scheme; it’s a great opportunity for businesses to improve cash flow, which at present, is more important than ever.
Throughout the COVID-19 crisis, we have been advising our clients to consider making a Research and Development tax credit claim. In only three months, we have submitted a record number of claims and received a relief amount of over £2,450,000 for our clients.
In the current climate, businesses are having to adapt to a new landscape in a very short space of time. The time businesses are spending on innovating their way around COVID-19 could qualify for R&D tax relief.
What is R&D?
Research and Development is a government scheme that supports and encourages businesses to innovate across numerous industries. This provides an opportunity for you to decrease your tax bill or receive a reimbursement of funds via HMRC. The amount varies depending on the number of hours that your business devotes to researching and developing innovations.
The definition of R&D is significantly broader than most people think. We believe that most businesses do an element of research and development, whether they realise it or not.
If any of the below apply to your company, then it is highly likely that you are eligible to put forward a claim:
- Creating any new products, processes, or services?
- Improving/developing an existing product, service, or process?
- Expanding overall knowledge in the field?
Effectively, R&D rewards companies that attempt to overcome uncertainties. Even if your business was not eligible to claim before the COVID-19 outbreak, it doesn’t mean that you don’t qualify now. Most businesses have had to develop ways to overcome hurdles and issues that have come to light due to the virus.
Surprisingly, we have discovered that R&D is rarely claimed because many people mistake research and development innovations as everyday tasks within their workplace. A study in 2018 showed that just under 50,000 R&D claims were submitted in the UK – this is a minuscule figure in comparison to the number of businesses that are actually entitled to claim.
To conclude, we would always say that it is worthwhile exploring the possibility of claiming R&D as you really have nothing to lose. The average amount that is refunded via R&D Tax Credits is £5,800, so why not get in touch to see if your business qualifies?
If you would like to find out more information, book a free call with one of our R&D Specialists below, and we’ll be able to provide you with an estimated claim amount after just one, short no-obligation phone call.
Call Now: 033 000 20010
Book a Call: https://www.greenjellyfish.co.uk/contact/