Could you claim tax to boost your cashflow
We are living in strange and uncertain times. Businesses across all industries are feeling financial pressure – not to mention the potential recession looming around the corner.
Many businesses are preparing for the worst and battening the hatches, in an effort to survive the oncoming storm. This is bad news for manufacturers as it means many customers are cancelling or postponing orders, which could affect cash flow.
Although there is no telling how long the journey to the ‘new normal’ will go on for, it certainly won’t be ending any time soon. This could lead to a lot of businesses falling behind or even closing down.
For those that have invested in research and development (R&D) in recent years, there may be a way to relieve some of the pressure.
At Invo Capital, we specialise in securing tax relief and innovation grants for companies investing in innovation. For R&D tax credits, businesses can get between 25-33% of their original spend on innovation from a successful claim.
Claiming Back R&D Tax
When our clients are looking to start a new project, we will often work with them through the decision-making process in order to give advice on how to make projects as innovative as possible and therefore increasing the likelihood of a successful claim.
R&D tax credits can be claimed for up to two prior accounting periods, which in some cases can be as long as three years.
Considering most manufacturers spend an average of £200k on a single project, successfully claiming 33% of that investment is a great way to relieve some of the financial pressure in these turbulent times.
What’s more, the process doesn’t take as long as many people seem to think. We can usually get a claim submitted within two to three weeks and if successful, HMRC should payout within four weeks.