With the effects of the coronavirus pandemic creating a serious cashflow challenge for many businesses, Luvo Financial has extended its 2020 campaign until 30 June 2020, so it can continue to support businesses through the current turbulent times. Here, Luvo co-founder and partner Ian Batkin provides some clarity on how recent government-promoted funding options will affect claiming R&D Tax Credits, and shares details of what Luvo Financial’s offer entails.
Claiming R&D Tax Credits can provide a lifeline for businesses in these difficult times. Eligible, cash-strapped, loss-making businesses can claim and promptly receive Payable Cash Credits, which could be a substantial funding option for those facing cashflow challenges.
According to HMRC statistics, SME’s on average realise a benefit of about £50,000 by claiming, and 95% of claims are settled by HMRC within 4 to 6 weeks of submitting. Therefore, the sooner you claim, the sooner you’ll receive the cash benefit.
Clarification on CBILS and Innovate UK claims
There has been some confusion as to how other recent government-promoted funding options will affect claiming R&D Tax Credits, specifically when it comes to claiming under the Coronavirus Business Interruption Loan Scheme (CBILS) and claiming an Innovate UK grant.
1. Claiming under CBILS will generally not affect an eligible business’s ability to claim R&D Tax Credits and/or the amount that can be claimed (unless the CBILS funding was specifically to fund proposed or continuing R&D).
2. Claiming an Innovate UK grant in respect of R&D work that’s been carried out or is proposed to be undertaken almost certainly will impact on the amount that can be claimed under R&D Tax Credits. It’s certainly worth exploring which provides the greatest benefit to your business prior to claiming either.
Through our campaign, Luvo is enhancing its R&D Tax Credits services and claims support to businesses during these very challenging times. It is very much business as usual for the Luvo team, albeit that we are working remotely; keeping in regular contact with clients via telephone, email and video conferencing, we remain available as and when you need to make contact with us.
For all engagements and re-engagements formally agreed during the month of June (up to and including 30 June 2020), our initial, upfront £2,000 fee will be postponed until you receive or realise the benefit from your R&D Tax Credit – this means that the businesses we support in making claims will do so with the certainty of our services being totally contingent (i.e. no-win-no-fee).
This fantastic offer, combined with our free one hour consultation meeting, makes our services totally cash-positive; our fee will only be payable when the benefit from claiming is realised, and we would certainly not encourage anyone to proceed with a claim unless we considered it both legitimate and viable. There is no charge for this initial consultation, and no need for commitment to take it further unless you wish to.
Get in touch
An independent R&D Tax Credits specialist firm, Luvo has a 100% claims success record. We are happy to discuss any queries that businesses might have regarding claiming under CBILS, claiming an Innovate UK grant, or claiming R&D Tax Credits and under Patent Box generally.