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Recovering development costs
One area of funding which is hugely neglected in the UK business sector is the money that can be recovered through the current UK Research and Development Tax Credit Scheme. http://www.hmrc.gov.uk/ct/forms-rates/claims/randd.htm. The scheme is designed to encourage and reward innovation. It allows innovative companies to either recover Corporation Tax paid and or receive a rebate of the NIC/PAYE generated by the business. Most first time claimants are able to also submit a claim for the last two completed year ends.
The average claim in the first year is £40k
Low uptake in the UK
Britain has the lowest uptake of this scheme across Europe less than 8,000 SMEs claimed last year. But it is estimated by HMRC that there should be 150,000 companies applying in the UK.
The reason why most companies do not apply is that they do not believe they do" R&D".
Many see R&D as something done by men in white coats in a laboratory rather than the development of a product.
They also often look at the scheme on the HMRC site and are intimidated by the terms used and often their external accountants advise them not to claim.
80% of clients either looked at this scheme at some point and thought they did not have a claim.
What typically are the type of work or projects undertaken that might qualify?
- The company must be a UK Limited company
- The company must have paid either Corporation tax , NI & PAYE
- For any project to be valid the company must have taken a financial risk.
- Projects that have failed can also be included
- Innovative projects
- Projects undertaken that seek to be greener more efficient
- The work of sub-contractors can be included.
What type of companies would meet the criteria?
- Software companies
- Technology companies
- Broad based manufacturing
- Anyone who is "innovative" and produces a product of some kind
Free Appraisal Service for clients
We offer an appraisal service for any company without cost or obligation.
Let Pegasus Funding Resources improve your cash flow by helping you raise funds through this government scheme.
Contact: r&d@pegasusfunding.co.uk
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