Help With Your Cashflow
As a result of the unprecedented disruption caused by the Covid-19 virus outbreak, many businesses are facing significant challenges with their cash flow. A survey for TechNation showed that 77% of scale-up businesses surveyed saw cash flow restrictions as the biggest threat facing their survival during the downturn.
At EmpowerRD our mission is to ensure that all deserving businesses gain access to the government funding they are due, and during this time of crisis, we feel that has been given an increased relevance. Therefore to support businesses through this downturn we are offering the following three services:
- Financial Year-End Change. We can assist you in bringing forward your financial year-end. This will allow you to claim your R&D tax credit early.
- EmpowerRD Now. We are able to advance the funds at the point your claim is submitted to HMRC. This avoids the typical 2-3 month wait time for HMRC to pay out.
- Advanced Funding. If you’re not in a position to bring forward your financial year-end, then you can apply for a loan through us on your future R&D tax credit. This is available up to 6 months in advance of your year-end.
By moving forward your year-end and opting for EmpowerRD Now you could receive your R&D credit within the next few weeks, even if it was due later in the year.
We hope that these measures might prove useful in these difficult times. If you would like to explore these then please do get in touch with our team.
HMRC Update 06.04.2020
Following HMRC’s call with claims advisors on 06.04.2020 we can publish the following update on how HMRC are adapting to the change in circumstances caused by the COVID-19 pandemic.
Recommitment to 28-day payment schedule
HMRC have implemented contingency plans and are applying extra resource to ensure that repayments are made promptly. At the moment they anticipate being able to make 95% of repayments within 28 days. This is of course very welcome, however if any clients are waiting longer than this for a repayment please contact us for assistance.
Potential leniency towards claims >2 years old
Strictly speaking most R&D claims should be made within 2 years of the company’s year end. HMRC do have some flexibility and in some very specific circumstances will accept late claims. These circumstances are set out at their statement of practice 5/01 here. While that statement of practice still applies they have indicated that in the present circumstances they are likely to view late claims with sympathy. Again if you anticipate this applying to you please contact us for advice.
Potential leniancy with companies facing administration
The requirement for a company to be a going concern when it makes a claim under the SME scheme is a legal requirement and the law does not give HMRC any flexibility in applying this. If you are considering making a claim but there is any chance of your company going into administration then please contact us as a matter of urgency so we can get a claim in as early as possible. HMRC have though asked for companies where this requirement is causing problems to contact them. We can assist you in doing this.
Government support schemes likely qualify as state aid
A variety of government support schemes have been brought in over the last few weeks. These will constitute notifiable state aid, which in turn will affect what you can claim for under the R&D schemes. It will though depend upon the facts and what exactly has been paid out. If you are in receipt of any of these please ensure you let us know when we prepare your next claim so we can properly check the facts and factor it in.
PAYE cap delayed until April 2021
Many of you will be aware that the government were consulting on introducing some form of PAYE cap for the SME scheme. The introduction has now been delayed until April 2021 with the design of the cap still to be announced. We will, of course, update you on this when we have the full details.
Software Development R&D Tax Credit Claims
Key insights into claiming R&D tax credits for software development projects.
RDEC Scheme Guide
The complete guide to compiling and submitting an RDEC claim. Includes an explanation of differences between the two schemes.
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How the government's Coronavirus loan scheme affects your ability to claim.
Which costs qualify for R&D?
A breakdown of the types of costs that can be included in your claim.
Which scheme should I apply to?
Understand how your business's financial profile affects which scheme you need to apply to
Is my business eligible for R&D tax credits?
Find out if the activity undertaken by your business can qualify as R&D.
How much can I claim?
Read how different accounting positions can affect how much you're able to claim.
What evidence is required to make an R&D claim?
Learn about the different pieces of evidence required for different R&D costs.
The most common queries we hear about the R&D scheme.