As we enter the next post-total-lockdown phase, there’s been much recent talk of businesses ‘bouncing back’, but this in itself raises a whole host of new challenges for cash-strapped businesses struggling to stay afloat. Ian Batkin, Partner at Luvo Financial, says that R&D Tax Credits have a key role in supporting businesses over the coming months. Here, he explains why.
The various forms of funding put in place by the government over the past couple of months have undoubtedly primarily been about trying to help businesses survive through this unprecedented period of time. But bouncing back from this very difficult period creates a whole new series of challenges, from planning the new way of working, to having the resources in place to successfully execute this and the progression to a very different ‘new normal’.
The role of R&D Tax Credits
In recent months, the phrase ‘cash is king’ has never rung so true. With this – and cashflow easing – at front of mind, claiming R&D Tax Credits (and indeed Patent Box) has an increasingly important role to play in supporting businesses through the next phase.
Approximately 90% of eligible SME’s are yet to claim the R&D Tax Credits that they are entitled to. By making a claim, businesses can not only reduce the amount of Corporation Tax that they pay, but eligible loss-making companies can also claim payable cash credits – cash funding from HMRC, which should be received within about a month of submitting their claim. The average claim by SME’s is around £50,000– a significant financial boost for cash-strapped businesses.
Helping businesses bounce back
Luvo Financial is an independent R&D Tax Credits specialist, with a 100% claims success record. We are committed to playing our part in helping businesses bounce back, and to help businesses better understand the R&D Tax Credit scheme and the criteria for claiming, we have produced a simple 5-Minute Guide to R&D Tax Credits, which explains why you should claim R&D Tax Credits and how to go about doing so.
Luvo has also extended our May20 campaign until 30 June 2020. This means that, for all engagements and re-engagements formally agreed during the month of June 2020, our standard, initial, upfront £2,000 fee will be postponed until you receive or realise the benefit from your R&D Tax Credit claim. The businesses that we support in making claims do so with the certainty of our team’s best-in-sector services being totally contingent (i.e. no-win-no-fee) and, as a consequence of this fantastic offer, combined with our free one-hour consultation meeting, also makes our service totally cash-positive.
Find out more
Take a look at our 5-Minute Guide to R&D Tax Credits video (as the name implies, it will only take 5 minutes!) and then get in touch to discuss our offers or any questions you may have about claiming R&D Tax Credits.
The Luvo team continues to work remotely throughout lockdown and is here to support clients, both old and new, to hopefully ‘bounce back’ following these difficult and challenging times.