As part of our continuous monitoring of the finance market we have discovered that British firms are missing out on thousands of pounds of Government support. While it may not be strictly part of our commercial finance remit, we believe that it is part of our ‘diligence commitment’ to spotlight the opportunities that so many companies, not just our Synergy brokers’ clients, are potentially missing out on.
This massively neglected opportunity for financial support is directed to encourage more firms to undertake Research & Development (R&D) in order to improve their competitiveness, their business performance and their profits. Since 2000/2001 less than one percent of companies registered at Companies House have claimed this enhanced tax support. To us this suggests that far too few businesses are undertaking R&D initiatives. Or maybe they are just not claiming the support to which they are entitled.
Is this because the majority of companies just can’t be bothered? Because they are not aware of just how easy it now is to finance? Or because they are unsure of how to claim it? Whatever the reason … what is clear is that they are missing out on what is potentially business-boosting research and development initiatives as well as generous tax incentives.
Even though strictly speaking there is ‘nothing in it for them’ our growing network of commercial finance brokers frequently highlight this opportunity when they meet clients and potential clients, and generally speaking the companies they are talking with are extremely grateful for the information. We know for a fact that a number of them have gone on to implement valuable R&D studies that have not only benefitted their business activities, but they have also enjoyed the excellent financial benefits that the tax relief brings.
R&D Tax Relief is a specific corporation tax relief claimable by trading companies of all sizes. Depending on the size of the company the R&D Tax Relief can:
- provide an additional deduction, over and above the amount actually spent, when calculating a company’s taxable profits (the ‘super-deduction’); or
- allow, in SME loss-making companies, the enhanced R&D deduction to be ‘cashed-in’ – resulting in a cash repayment from HMRC; or
- reduce a large company’s profits by introducing an additional deduction into the profit & loss account (an ‘Above the Line’ deduction).
To claim this relief you must of course be involved in some form of R&D. The good news however is that there is now no minimum spend requirement. Our brokers will be happy to discuss the opportunities with you and even though it does not fall within the scope of our commercial finance products they will quite willingly help you connect with trusted professionals who can assist you to obtain the tax relief to which you are eligible.
If you would like to know more about these opportunities, or indeed if you are looking to explore ways to secure commercial finance for any current or future project, please contact us by calling: 01904 481 786, email us at: email@example.com or return the online form on our Contact page.