Staying on the hobby horse
Sometimes it is a good idea to stay on a hobby horse – this one has brought in over one million pounds in cash for our clients!
At the beginning of each year, I pick three business topics which are worth the consideration of the business community – clients and non-clients alike – and promote them with an almost evangelical zeal in the year ahead. The topics vary from using incorporation to reduce tax bills and improve business management, to green technologies to get cash back on the feed in tariff, save on energy costs and look after the planet, to opening up operations in new markets such as China and the US.
One topic has been on my litany for three consecutive years now – if we have met, you may already have heard this! Following the changes in April last year, it is one of my all time favourite government schemes: Research and Development Tax Credits.
Using this scheme, which is available to business of all sizes, can result in tax deductions of 225% of the expenditure incurred or a cash back option for SME’s of 24.5%. As a friend of mine says, “what’s not to like”!
So it is interesting to note that over £4bn of expenditure on research and development each year is estimated to be unclaimed under this scheme – that is up to £1bn of cash back which businesses are missing out on.
Unsurprisingly, we are very keen that businesses should be claiming this cash and are working hard to help them do this. Recently one of our clients cashed a cheque from HM Revenue & Customs which took our clients cash reclaims over the £1mn mark – a start but there is still plenty of work to be done.
If you are one of those missing out on the one billion or know someone who is then give me a call on 020 8545 7600 as I would be delighted to talk to you soon – I’ll be on my hobby horse, Hi Ho Silver, Away!