Read the latest news and stay updated on industry insights!
-
How to raise capital if your R&D tax credit puts you into a loss position
Your client’s company made a profit in this financial year. Naturally, they are thrilled. However, they spent a great deal on R&D, and the resultant R&D Tax Relief has reduced their corporation tax liability to the point that it looks like they have incurred a loss. While R&D tax credits do not create a true…
-
Grants and R&D tax credits
Since Brexit and the Covid-19 pandemic, companies across the UK have been offered increased business support through government grants. The Department for Business, Energy & Industrial Strategy has reported on the amount of funding allocated to SMEs through both the Small Business Grants Fund and the Retail, Hospitality and Leisure Business Grants Fund. From December 2020 to…
-
HMRC and R&D tax credits enquiries
A comprehensive, well-prepared, and accurate R&D tax credit claim is critical, not just for maximising your client’s claim but also for avoiding an HMRC enquiry. R&D tax credit claims are reviewed together with their relevant supporting documentation and, if no further clarification is needed, processed fairly swiftly (usually within 28 days). It is the process…
-
How R&D tax relief encourages UK Research & Development
Encouraging innovation is the primary purpose of the UK’s Research & Development (R&D) tax relief schemes. This is, in turn, part of the government’s goal of improving UK business productivity, performance, and competitiveness on the international stage. The government’s industrial strategy is to raise levels of R&D investment to be 2.7% of GDP by 2027,…
-
The case for and against your client surrendering their losses for R&D tax credits
A business in loss doesn’t necessarily mean that it’s failing. Startups, for instance, often experience a spending deficit to get off the ground and fund long-term investments. Data published by the ONS in August 2020 revealed almost 16% of UK businesses were experiencing costs greater than turnover, a further 13% said they were breaking even, and nearly…
-
RDAs Explained
The UK government currently offers businesses two types of incentives to do Research & Development (R&D): While much of the focus in our blogs has been on R&D tax credits, it’s important to discuss the value of the often overlooked RDAs and how, when combined with R&D tax credits, they can offer significant savings. What…