A bespoke arts and crafts business has received in excess of £100k cashback from the government via the research and development tax credits scheme, in just two years.
Rob Sowden, innovation tax incentives specialist at Bournemouth-based Business Cash Enabler writes:
“It is very satisfying to calculate that this business has received over £100k cashback over just a 2 year period via the government’s Research & Development (R&D) tax credits. They manufacture materials for the arts and crafts DIY market and this is not in a traditional sector that would be associated with R&D. This case highlights that a business in any sector that is involved in any form of unique innovation that incurs costs via the payroll or external labour, can benefit from this very generous scheme.
“Many businesses have missed this incredible funding support from the government because they have tried to self-assess their eligibility or the opportunity may never have been raised by their accountant. It is not primarily an accounting workstream, it is about technology and overcoming uncertainty with a view to creating or appreciably improving a product or process. The claims provider I introduced this business to assigned a technical analyst to assess what the client does and to compile a robust report for submission to HMRC. The company’s accountant received copies of the reports and submitted them to HMRC with the resultant six figure cashback. That is not the end of it though, it is a year-on-year cashback opportunity.
“My advice to businesses is, don’t try and guess if you are eligible, obtain a free eligibility assessment. Even if you have received benefit under the scheme, get it checked out as to whether you have received maximum entitlement as you can claim any shortfall for the past two years, but each year has a two-year deadline. The average claim last year was £53k as a guide.”
Business Cash Enabler provides a free service to businesses to check eligibility for innovation tax incentives.