Some contributory factors of the UK’s current political and economic uncertainty may finally conclude in the coming weeks and months, which Luvo Financial partner Ian Batkin believes could be another encouraging sign for businesses that are eligible for tax credits and savings, as he explains in his latest viewpoint blog.
It’s almost that time of year again; we are fast-approaching Christmas, the New Year, and the joys that most Accountants endure each January – self-assessment Tax Returns. Seriously, what I actually refer to is the General Election on 12th December 2019 and, depending on which Party gets elected, maybe even something definitive on whether or not the UK is going to exit the EU in 2020.
Thankfully, both of these are not normally annual events, and certainly provide further encouragement for those eligible companies who haven’t already done so, to take steps to claim R&D Tax Credits, as opposed to continue to leave this legitimate and worthwhile tax saving on the HMRC table.
£50,000 average claim
HMRC figures suggest that less than 10 percent of eligible SME’s currently claim R&D Tax Credits, and that those that are claiming, enjoy average tax savings / recoveries in the region of £50,000!
- If elected, the Conservative Party has announced that despite promising to do so in the Budget in 2017, will not reduce Corporation Tax by 2 percent to 17 percent in April 2020, but will compensate / make up for this by incentivising SME’s in other ways. These ‘other ways’ are said to include cutting Employer NIC’s and further encouraging Research & Development (including increasing R&D Tax Credits).
- If the UK does exit the EU in 2020 (and your guess is no doubt as good as mine, as to exactly how this will pan out), then UK businesses will almost certainly no longer qualify for EU funding and grant support of Innovation and R&D. It’s by no means clear if R&D Tax Credits can entirely fill the hole this would create, but this will surely encourage more UK businesses to seek alternatives and no doubt look to their Accountants for advice and support.
As a well-established independent specialist tax practice with a 100 percent claims success track record, Luvo Financial has supported hundreds of R&D Tax Credits claims over the past five years. From our West Midlands base, we operate nationally, working with accountants and businesses across the UK.
When working alongside Accountants, we provide specialist support to their clients, from establishing their eligibility to an R&D Tax Claim, to supporting them in efficiently and effectively compiling and submitting a claim.
We certainly don’t compete with Accountants, in fact more than 90 percent of what we do is R&D Tax Credits and Patent Box. A high proportion of the claims work we undertake for and from referrals from Accountants, often includes fee-share in return for introductions for example. We work on a contingent basis and our fees are reasonable.
Get in touch
If you are an Accountant and would like to find out more about how Luvo Financial can work with you and your firm to support more clients to make worthwhile and financially valuable R&D Tax claims, please get in touch with a member of our team.