Boost your cashflow with R&D tax credits

The Coronavirus outbreak has caused a lot of uncertainty and potential cashflow problems. Many businesses are struggling to survive this crisis, especially in the short-term having to fund furloughed employees. Even though the Government’s grants and loans should prove to be a huge lifeline, they are not a quick route to cash.

For those that qualify (about 15% of limited companies according to one recent research programme), Research and Development (R&D) tax credits can help your business survive Coronavirus by rewarding innovation and by boosting your cashflow with thousands of pounds in tax relief. 

This is free money that you can claim if you have created or improved a new process, product or service in the last two years, and you could receive it a lot quicker than any other grants or loans announced by the Government. 

Don’t be like other business owners who often overlook opportunities for an R&D claim by overestimating the level of innovation required or think it’s only for technology or manufacturing businesses – which isn’t true at all! Any business in any industry can be eligible for R&D, but you must:

• Be a Limited Company in the UK that is subject to Corporation Tax
• Have carried out a qualifying research and development project in the last 2 years, i.e. worked to improve or create a product, service or process
• Have actually spent money on the project

The project doesn’t even need to have been successful, and you can still claim if your business is in a loss-making position! You only have a two-year window to make a claim, so you need to act now.