Using R&D Claims to Improve Cash Flow and Growth
If you’ve done your homework on the UK Government R&D Tax Relief Incentive Scheme, then you’ll know that the reason for the scheme is to encourage companies to invest in research and development activities.
This incentive isn’t just to benefit companies that conduct R&D in their usual business activities (think lab technicians and precision manufacturing), but it can also provide incentives for businesses that have undertaken R&D activities without even realising at the time (think construction companies, web developers and even new starts).
This means that there are many businesses, in many sectors, that can benefit from the R&D Tax Relief Scheme.
The problem, however, is that there are certain stigmas around making R&D claims. That the scheme itself is too complex; there isn’t the time to put a claim together; you have to outlay resources to submit an accurate claim; if the claim isn’t approved it will be a waste of time and money.
Well we’re here to tell you that’s true… unless you use the right R&D tax scheme specialist, in which case, there won’t be any risks. All your concerns over making an accurate R&D claim will be alleviated, including worries that making a claim could impact negatively on your cash flow.
So, is using a R&D tax relief specialist really worth it?
Is It Worth Using R&D Specialists for R&D Tax Claims?
Understanding the R&D Tax Credit scheme isn’t easy, we’ll give you that. There are many interpretations of what constitutes a scientific or technological advance, not all of them correct.
Using a specialist in R&D who makes it their entire business to understand and utilise the R&D tax scheme incentive comes with more benefits than just saving you time and confusion. It also:
- Improves cash flow
With the right R&D tax relief specialist you won’t have to pay a fee until after the benefit has been received. Therefore, businesses won’t have to part with any money for using a R&D tax specialist until they’ve actually received their tax incentive credit payment or reduction. And if you don’t receive a benefit, then you won’t have to pay a fee.
This means that the process of making R&D claims won’t have a negative impact on your cash flow. Here at R&D Tax North West Ltd, we won’t charge a fee until you receive some benefits, to ensure you can maximise your cash flow to benefit your overall business.
- Increases the chances of a final approval
Unlike Accountants, who have a general knowledge of many tax schemes and legalities, R&D Tax Relief Scheme Specialists have an extensive and in-depth understanding of the R&D tax credit scheme, including any changes that can occur. This means that R&D tax relief specialists are better qualified to prepare and submit accurate claims that meet the complex requirements of the scheme.
In addition to this, R&D tax relief specialists like R&D Tax North West Ltd, hold years of experience with successful claims, as well as extensive technical knowledge that relate to a range of sectors, including manufacturing, renewables and energy. So, R&D Tax North West not only understand the technical jargon, methodology and rationale of your R&D projects, but also how to simplify this for the R&D Tax Claim submission.
- Identifies every qualifying expense for maximum benefits
Not all costs incurred through R&D work qualify for R&D tax relief. In fact, there are many factors that need to be considered to determine exactly which costs qualify; for example, hire or rental costs don’t qualify, neither does expenditure on the production and distribution of goods.
A person inexperienced in preparing R&D claims may overlook a variety of costs that can be claimed. However, R&D Tax Relief Specialist can identify the optimum value of eligible costs so that you receive the maximum relief available; this includes helping you claim correct percentages for sub-contracted work and expenses for collaborative R&D projects.
- Inspires further innovation for growth
Despite the fact that R&D work is critical for the success of many businesses, it is often avoided due to the risks and costs involved.
Venturing into the unknown with R&D work can be daunting. However, it can be more appealing when there is the support of a financial incentive, the R&D Tax Relief Scheme, to alleviate the financial burden of conducting R&D. It’s reassuring to know that even if R&D projects are not ultimately successful, eligible costs can still be claimed.
The R&D Tax Credit Scheme is, of course, a great support to inspire businesses to conduct R&D. Not just when it comes to product innovation, but R&D that is conducted to devise new strategies, approaches, capabilities and processes that ultimately help to lower running costs and increase the financial stability of the business.
So is it worth using R&D tax specialists for R&D tax claims? Absolutely.
Not just to help improve cash flow with a no benefit, no fee policy, but to ensure your company receives the maximum benefits available so that it can continue to innovate and succeed in an increasingly competitive environment.
Want to know if a recent, or potential project, will qualify for R&D tax relief? Just ask us here.