Sometimes it’s amazing the sources of funding that you can find from simple measures taken from within your business. Employing some of them could have a significant impact on your cash flow.
Examples might be:
- Asking for extended credit
- Paying your existing suppliers on their due date rather than before
- Asking your customers to pay you ahead of the due date by offering a little discount.
Already doing the above?
There are also legitimate ways to reduce your tax bill.
For companies that are doing interesting things with Science or Technology, one of the best things you can do to reduce your tax bill is to keep doing what you’re doing. However, make sure you claim the most rewarding tax relief from Government, which is Research and Development Tax Credits.
This would be more like finding a couple of tenners in your wallet amongst a swathe of receipts, rather than the occasional pound coin and coppers the other activities identified above might find!
Unfortunately, I can pretty much guarantee you that you won’t have been the only person that’s found those tenners, as the rest of this article will attest to!
The Uptake of R&D Tax Relief
The Office of National Statistics published their annual review of the uptake of the Research and Development Tax Relief Scheme.
They make for some very interesting reading. Headline figures for all the claims submitted in relation to the March 2016 tax year show that a total of 43,040 claims for R&D Tax Relief were submitted, of these 36,820 (over 85%) were submitted by SME businesses. The total cost of all claims was a staggering £3.7bn of tax relief.
If you think those figures are significant, the initial figures for 2016/17 are even more staggering, so far HMRC has processed 39,960 claims of which 34,060 are from SME businesses, but there were still another 9 months for claims to be submitted.
The number of claims processed for the 2015/16 tax year stood at only 26,255 claims. So, nearly 40% of all claims were processed after the statistics were published.
Don’t Want To Poke Down The Back Of Your Sofa?
You’re in luck, we offer 15-minute phone calls for companies who want to improve their cash flow by seeing if their company can claim R&D Tax Credits.
Our #FindOutInFifteen promotion will allow you to have a no-obligation discussion with our director, Simon Bulteel to see if your company has any eligible projects.
Book using this Calendly link https://calendly.com/simon-bulteel/15min and we’ll see if we can help you boost your cash flow.