The government is giving away cash to innovative small companies based anywhere in the UK. No . . . they really are. On average it’s £46,000 per company – not bad. But we bet you’re thinking what’s the catch and why haven’t I heard about it before?
The catch is you have to be eligible, obviously. That means 1) you must have fewer than 500 employees, 2) be paying permanent staff (or subcontractors) to develop something new or different and crucially 3) you must be carrying out innovative work that HMRC would classify as R&D. In short, you could be writing new software, developing new products, overcoming a difficult coding problem or just plain working on something amazing. To find out if you’re likely to be eligible, visit our stand (546) and take the eligibility test.
Why haven’t you heard of it before? Well, probably because it’s called the “R&D tax credit scheme”. We can hear you snoring already. We believe the applications for this cash payment, which is designed to help innovative businesses to grow, is embarrassingly low because the name is rubbish. We prefer to call it cash for innovation. Many accountants believe their clients can’t claim because the business doesn’t employ boffins in white lab coats peering down microscopes. Mistakenly too, they think you have to be making a profit and paying tax in order to get it. This is completely untrue. You can get a cash payment whether you’re in profit or loss, and it’s fine if you don’t even own a microscope.
The scheme has been around for the last 15 years. According to HMRC figures, of the 4.7 million SMEs across the UK, only 14,000 applied for it last year. Government policy in this area is really good, but SMEs are losing out on millions, if not billions in cash payments. Calling it “R&D Tax Credits” is a disastrous mistake – it’s enough to put anyone off.
This scheme is about innovation - trying to overcome design or manufacturing obstacles, solving problems or building something bespoke, like a software programme that no one else has considered yet. If any of the above might apply to you, get cracking and join the 14,000 businesses that cashed in last year.
Visit www.breakthroughfunding.com to understand the scheme in more detail, or if you want to speak to a real person who is friendly and can explain it all. Visit us on stand 546 or give us a call on 0800 772 0800.