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R&D: Unlock the Cash In your Business
2 April 2020
If there’s one thing at the forefront of business strategy at the moment then it has to be managing and unlocking cash in your business, and research and development (R&D) could be the ideal way to do this.
It may seem like a long time ago when the new Chancellor Rishi Sunak delivered the Government’s first budget speech, but in it he promised the largest and fastest increase in R&D in decades, with investment increasing to £22bn a year. An ambitious figure that increases investment in R&D activity and stops us continuing to fall behind other countries such as US, China, Japan and France.
Whether you are a business looking at diversification due to changing demand in the marketplace – like Scottish brewery firm, Brewdog, making hand sanitiser,or a Formula One Team developing a breathing device, or you are already undertaking elements of research and development in your work, the R&D Tax Credits are available to help your business providing vital support as businesses face potential cash flow issues.
R&D Tax Credits are designed to encourage investment in innovation and development, and it doesn’t necessarily have to be a huge scientific or technological break-through.
It’s not just for those companies who are manufacturing test kits, like Derby-based SureScreen Diagnostics as a recent example, or labs working on producing a vaccine that conduct R&D. It can also apply to SME businesses involved with research and development activity and in many different industries and sectors, including food and drink; civil engineering; architects; consultancy; IT, manufacturing and many more.
During this period of uncertainty and disruption, this could help a number of businesses including yours with a much-needed cash injection which could be the lifeline needed to support your business through this turbulent time.
Sound too good to be true?
Let us look at the mechanics of your business and uncover the full extent of R&D your business undertakes. Our R&D team includes people from a wide range of technical and scientific backgrounds, and we use our considerable experience to ensure your claim is robust and you receive the maximum entitlement with as little hassle to you as possible.
We can be doing all this on your behalf leaving you to concentrate on what you do best – developing and leading your business. Remember, for every £1 spent on R&D, SME’s can claim up to 33p and the average refund in the UK amounted to £53,876 in 2016-17.
What should I do next?
HMRC have further updated their guidance regarding the changes to the R&D tax credit regime for SMEs from 1 April 2021.