New Funding Support and What To Do
Britain has now officially left the EU. Changes involving trade are just one of the many areas that businesses will have to adjust to, in addition to dealing with the current Pandemic.
We mentioned late last year that a 3rd lockdown is likely Post-Lockdown: What We Know, Where to Focus & How R&D Tax Credits Come Into Play – RDP Associates.
The country continues to face ongoing challenges and uncertainties to the economy even now that we have vaccines. It will take significant time for everyone to get vaccinated and it is very likely that most of 2021 will be similar to what we experienced last year. It is in our best interest to take advantage of all funding available during the pandemic. One way to plan and ensure companies remain in business is to continue investing in R&D activities. This will allow companies to provide new solutions to other businesses and consumers once the lockdowns are no longer necessary.
During the current lockdown, the disruption of our businesses suffer and require new support from the Government. Fortunately, companies now have additional funding to help. The Government has now allocated a £4.6 billion support package to assist companies to stay afloat. Following are some key points from The Chancellor’s announcement:
Funding for non-essential companies, specifically the retail, leisure and hospitality industries. These companies will receive a one-time cash grant worth up to £9,000. Grants for these industries will be distributed on a per property basis, and based on a recipient’s rateable value:
> £4,000 grant for businesses with a rateable value of £15,000 and under
> £6,000 for companies with a rateable value between £15,000 and £51,000
> £9,000 for businesses with a rateable value of more than £51,000
The UK government is also providing £600 million that does not fall under the new funding provided so that industries outside of retail, leisure and hospitality can benefit.
Additional funding being provided by Government can be found here Coronavirus (COVID-19): Business support – GOV.UK (www.gov.uk).
Finally, R&D tax credits is another source of funding that companies are able to take advantage. At this time, we still know that companies are able to claim R&D tax credits post Brexit under the SME and / or RDEC schemes and, more likely than not, will be able to in the future. If you are in the opinion that a company is required to be profitable to claim, it is not the case. Loss making companies are able to also claim and obtain actual cash for its R&D activities.
If you are not claiming R&D tax relief, please contact us for a 15-minute assessment in order to advise and provide you with an estimated range of your eligible R&D tax benefits.