Tax experts from a Shropshire firm say businesses struggling in today’s unprecedented times could be missing out on a vital lifeline.
Francesca Hutcheson, Tax Director at Dyke Yaxley Chartered Accountants, in Shrewsbury, said the ever-changing and fast-moving Coronavirus situation was proving to be an incredibly tough challenge for companies.
“The Chancellor, Rishi Sunak, has now announced a wide-ranging package of emergency measures aimed at providing grants and loans to support businesses through this crisis. But at some point, those loans will need to be repaid.
“In the meantime, businesses should continue to look at how they can manage their short-to-medium term cash-flow, and a successful research and development claim can often be a key step.
“It can unlock a valuable tax refund in return for a relatively low investment of time, and generally speaking, any business that is developing new products or improving existing products and processes is likely to qualify for the relief.”
Mrs Hutcheson said for a loss-making business, every £100 of qualifying expenditure could potentially generate up to £33 of cash for the company, and the latest payouts had been made more quickly in recent weeks after HM Revenue and Customs increased the speed of the repayment process.
“At Dyke Yaxley, our dedicated tax specialists are hugely experienced in making R&D claims across a wide range of sectors, including software start-ups, food manufacturers, construction, the automotive industry, and many more.
“And in fact, our latest success included the case of a manufacturing business in south Shropshire who had previously been told they were not eligible to claim the enhanced tax relief, and yet we secured an £80,000 payout from HMRC on their behalf.”
Mrs Hutcheson said it was important for businesses to act as soon as possible in order to minimise any potential cash-flow difficulties.
“The sooner you seek professional advice, the sooner you will find out if you’re able to make a claim.
“And particularly in the current climate, our team can guide you through the claims process without the need for face-to-face meetings, with minimal input from your company, so that you can focus on the day-to-day running of your business.”