How to access £22bn govt R&D Pot

Date: 05/06/2020
Author: Jack Sheridan
Company: Recoup Capital

Recoup Capital is offering GM Chamber members the opportunity to gain financial assistance through research and development tax credits on business spending.
  In the UK, companies can claim tax relief for research and development activities.

In speeches at the tail end of 2019 Prime Minister Boris Johnson promised to 'level up' UK industry with business stimulants for innovative businesses.

This commitment to spending has shown, with Recoup's average claim sitting in excess of £130,000.

Do you qualify?

- Do you design and make products?

- Do you suggest a more cost effective process?

- Do you suggest a more time efficient process?

- Do you spend time researching and development of current projects?

- Do you seek to improve processes, services, materials or devices?

- Do you make prototypes or perform testing?

- Do you develop software or IT solutions?

- Have you invested in failed projects or developed products that are never launched/used?

- Have you bettered a product, process or service?

- Do you employ any staff of a highly skilled background or with a technical or scientific background?

Recoup is already working with some of the largest names in property in North West from architects, developers, construction contractors, town planners, office fit-out, hotels, care homes, furniture providers, civil engineers, M&E, fire safety companies, manufacturers and more.

Anthony Doran, Managing partner at Recoup, added:  "we have successfully claimed back £975,000 in the month of April taking it to a total of £4,193,000 in 2020 alone. These rebates are providing a vital tool for businesses in this difficult period where they may not have qualified for other government support." 

This government scheme is designed to boost innovation by supporting businesses who seek to improve or overcome challenges in their products or processes.

The scheme is administered by HMRC, which aims to clear 95% of tax credit claims within 28 days and is currently meeting this aim. Chancellor Rishi Sunak, in his Budget in early March, increased R&D funding to £22bn a year with a further 15% increase promised for the following year.

Research and Development Tax Credits is an area largely misunderstood by the business community with HMRC finding that only 5% of eligible firms make a claim under the relevant legislation.

Typically, companies can reclaim up to 33% of qualifying expenditure in the form of a corporation tax credit or a cash payment if they are in a tax loss position.

The process from engagement to receipt of refund typically takes eight weeks and all would be completed on a No Win, No Fee basis.

The process employed by Recoup seeks to minimise the involvement of senior management, requiring only up to 1.5 hours of management time.

Recoup Capital has successfully claimed millions of pounds in tax rebates for hundreds of companies through cash payments and reduced corporation tax bills.