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How R&D Tax Credits Can See Your Business Through Lockdown

Posted on November 6, 2020

R&D Tax Credits could provide your business with a much-needed cash injection, allowing you to power through lockdown. Believe it or not, the Governments Research & Development scheme has been around for two decades – but making sure you claim them as soon as possible, is more important than ever!

Going Online

Being seen online is more important than ever. The time and money that companies are spending on developing a digital presence could qualify them for tax relief. If you have had to overcome uncertainties to take your business online then you’re likely eligible to make a claim.

Working from Home

To enable people to work remotely, or from home, there will need to be a significant improvement to the network infrastructure. Examples of improvements could be the development of a security protocol to allow staff to work from a remote location.

Solving Problems

During the COVID-19 lockdown, learning new skills and undertaking training to solve complex engineering and/or software issues could also qualify you for the scheme.

How R&D could Provide a Quick Cash Injection

During these unprecedented times, many businesses ware feeling the strain of lockdown.  The Government have continued to pay out Tax Credits, regardless of whether companies have delayed payments to HMRC due to Covid-19. Not many people are aware of this help which is available to them as a business.

Now would be the ideal time to get ahead by starting the claim process as soon as you can. Here at Green Jellyfish, we make the process as smooth as possible. Leave it to us so that you can focus on your business!

The R&D scheme can help to protect jobs within companies during these tough times. Around 80% of R&D Tax Credit Claims are made up of peoples time, so, if you have staff with fewer projects to complete at this current time, you should consider adjusting their job role to fit them into one of the companies development roles. A percentage of these costs will be eligible to be reclaimed through R&D tax relief.

If you’re curious to see how much you could claim back, use our free, bespoke R&D calculator!

Will the Coronavirus Business Interruption Loan Scheme (CBILS) Affect My R&D Tax Credit Claim?

The UK Government has listed the Coronavirus Business Interruption Loan Scheme (CBILS) as state aid under the European Commissions new provisional structure for Covid. This means that it is fully notified aid, for this reason, the restriction on the receipt of other state aid (s1138(1)(a) CTA 2009) could apply here. For example, if the CBILS relates to your company’s R&D expenditure on a project instead of being intended to support the company.

How Innovative UK Businesses are Reacting

In a time of uncertainty, it is truly inspiring to witness the gumptious British Spirit and innovation beckon through. From British medical research being at the forefront in the hunt for a vaccine, to changing production lines to produce what Britain needs. These businesses leading the charge are the same ones that qualify for R&D tax credits

How can Green Jellyfish Help You?

We have an expert team of R&D specialists who know exactly what HMRC are looking for in terms of what you can claim. This means our clients get the maximum claim possible.

We will be more than happy to answer any questions or concerns you may have, so do not hesitate to contact us!

Sign up to Green Jellyfish today and begin your R&D claim.