The phrase “cash is king” is one that is still true today.
Without cash, you’ve not the backbone needed to grow your business. In today’s world, we’re seeing that more and more, with businesses failing due to a lack of cash to invest in their day-to-day.
And if you’re innovating, you’re going to want access to funding your next big push in your R&D work.
That’s where R&D tax credits come in, and chances are, you might be eligible.
Allow us to explain!
LET’S SET THE RECORD STRAIGHT…
WHAT ARE R&D TAX CREDITS?
We’re glad you asked! R&D tax credits are tax relief designed to reward businesses for investing in innovation. That’s a cash injection straight into the bank, for you to invest as you please.
To benefit from R&D tax incentives, there are a number of criteria that your business must fall into:
COMPANY SIZE
You’re a limited company in the UK, with less than 500 staff and a turnover below £100 million.
CASH
You’ve spent money on these projects, attempting to resolve technological uncertainties.
TECHNOLOGY
You’re using technology to develop new products, or improve efficiencies.
GOALS
You’re striving to advance the fields of science and technology, and develop a breakthrough.
What’s to gain?
In short… a lot! In 2017, the average claim for small businesses was over £50,0000, with a total of £3.5 billion being claimed in tax credits by innovating businesses.
That’s huge, and if you opt for a cash credit directly into your bank account, that’s money that you can reinvest straight back into the business, whether it’s for hiring new staff, growing and scaling, or something else entirely!
Your other option is a reduction in your tax bill, which would be roughly 20-25% of the amount spent directly on R&D. That’s a saving that could really benefit your business’ bottom line.
DID YOU KNOW YOU CAN CLAIM FOR:
Staff costs, including salaries and NI contributions
Costs of consumables, including water fuel and power
Cost of software
Subcontracted R&D costs
Clinical trial costs“SINCE RAEDAN HAVE COME ON BOARD AT RKM THE CHANGE AND DIFFERENCE HAS BEEN LIKE NIGHT AND DAY. THEY ARE ABSOLUTELY BRILLIANT AND HAVE MADE BOOKKEEPING AND MANAGEMENT ACCOUNTING A JOY. A BREATH OF FRESH AIR, AND FINALLY AFTER 16 YEARS OF BUSINESS I HAVE FOUND THE RIGHT TEAM FOR THE JOB!”
– Rob Montague, Founder, RKM Communications.
OUR PROCESS AND COSTS
If you’re looking at submitting an R&D claim, we partner with you, handling the entire process from start to finish.
That means no calls on hold with HMRC, or mass paperwork piles – we’ll handle it all on your behalf.
As for fees, we give you two options: £3000 upfront, regardless of success, or 10% of the tax credit or corporation tax reduction.
Click here to watch a video from our founder, Jonathan Bareham, on why we charge this way and how we support you.
LIKE THE SOUND OF R&D TAX CREDITS?
Amazing, so do we! The next step is to have a chat with us to see how R&D tax credits could save you money and make a really difference to your business.