With lockdown restrictions easing on Monday 12th there is light at the end of the tunnel for thousands of UK businesses that have been forced to close due to the pandemic. It is no secret that the hospitality and retail sectors have been hit the hardest by the pandemic with an estimated 600,000 jobs lost in hospitality and over 14,800 permanent closures of retail stores since lockdowns started in March 2020 (source: evening standard). Despite the implementation of the furlough scheme, both small and large firms have made thousands of redundancies as revenues have been largely eliminated. Whilst the government has provided grants and bounce-back loans to some firms, these have not come close to covering the escalating costs of rent and other bills. As the economy opens back up and businesses start to reopen, business owners are hoping to recover quickly from the restrictions, but even with rules being relaxed some firms will continue trading at a loss until there is more certainty regarding the effectiveness of the vaccine against new variants.
In the retail industry, ‘non- essential’ shops were told to close their doors throughout 3 national lockdowns leading to hundreds of retailers struggling to stay afloat. Fashion giants such as the Arcadia group went into administration after hundreds of key outlets permanently closed due to weaker footfall paired with increasing online competition. Despite ‘non- essential’ shops now allowed to reopen, the coming months will still remain difficult and crucial in determining whether the industry can bounce back. Many companies are looking for financial aids to help them through the rest of the year which is where randd uk can help.
If your business has used innovation to adapt to the pandemic, you could be entitled to cash through the R&D incentive. The R&D incentive is a government-funded scheme that seeks to reimburse businesses for spending time and money on innovation. For example, if your business has dedicated time to creating or improving a bespoke system you could qualify for R&D relief. Many businesses do not realise they’re doing eligible R&D which leads to millions of pounds being left unclaimed every year. Notably, R&D is defined as striving to improve existing products, processes, and services or creating new ones which many companies naturally already do to stay competitive.
Other eligible innovations are:
- Overcoming technical challenges
- Creating and testing prototypes
- Streamlining processes
- Trialing new materials
- Developing bespoke software
- Trial and error
- Industry firsts
What costs can you claim for?
R&D claims are constructed from overhead costs rather than capital expenditure. These costs are then enhanced to make up the claim. They include:
- Staff costs
- Materials consumed
- Utility costs
- Some software costs
If you are looking for a cash injection, make sure your business has explored the avenue of R&D tax credits to ensure you aren’t missing out on the financial aid you are entitled to. Call the office to speak to one of our specialists today to see if you are eligible.
Read our latest success stories to gain a better idea of the projects and businesses that qualify for the incentive:
- Eco- friendly Middlesbrough based firm receives £73.7K in R&D tax credits
This business was created by a keen environmentalist who wanted to redevelop the pyrolysis process originally used to recycle tyres, to pyrolysize un-recyclable plastics into diesel oil. This would produce a sustainable fuel source and would reduce the amount of plastic being sent to landfill and incineration. The company works with countries and businesses to educate them on how to recycle the un-recyclable by teaching them to use pyrolysis to reduce the amount of plastic waste to reduce the impact of our landfill crisis. The company innovates by constantly seeking out new plastics that can be converted through pyrolysis that can produce a higher grade diesel oil. R&D projects include researching ways to work with the aviation, marine, and car fuel sectors to allow their engines to process the more eco-friendly oil.
- Leicestershire based client is awarded a latest claim worth £52.2K
This company is one of the UK’s largest independent diesel engine specialists. They are involved with everything from a two-cylinder pump to a small military tank and even twelve-cylinder inline diesel pump systems. There are 3 elements of the business: repairing and remanufacturing injectors, re-manufacturing and repairing pumps, and the R&D Centre. The company’s R&D involves investing in improving its production facilities, and staff, and expertise. Often prototypes have to be made and intense trialing and problem solving are required to achieve technological breakthroughs.
- Nottingham based business is granted £18.3K making their total claim to date £58.8K
This business is one of the UK’s largest stockists of general engineering maintenance products and services. Their purpose-built central stores in Nottingham are well placed to cover the East Midlands using their fleet of vans to enable same-day service. They have invested in the latest IT systems to ensure they can keep pace with the ever-changing distribution market and their bespoke business model is constantly developed so products satisfy customer needs. Their R&D includes prototypes and sample products being developed on-site as well as new technologies and techniques being utilised.
- The latest claim worth £45.1K makes this company’s total claim to date £56.2K
This firm is one of the UK’s leading manufacturers, suppliers, and installers of Lifeguards’ Drowning Detection Systems and Drowning Prevention Technology. Their mission is to improve safety in the water at swimming pools, leisure centres, spas, and leisure parks and they have used R&D to develop technology to ensure lifeguards can maintain their concentration for longer.
- Manchester-based firm receives £46.2K in R&D tax credits
Established for over fifteen years, this company has become a respected name in the UK domestic lighting market. Based in the North- West, the organisation is a wholesaler for lighting supplying to many big retailers. The Company seeks to offer competitively priced lighting which is focused on quality product design and customer service. They have used R&D to service bespoke client requests and create unique products.
Could you be eligible for an R&D Tax Credits claim?
During these turbulent economic times, businesses across the country are looking for solutions to their cash flow problems. Many companies are looking for grants and loans and overlook that fact they could be eligible for R&D Tax Credits. By successfully claiming R&D Tax Credits, your company could receive a cash injection from HMRC in as little as four weeks.
Call our experts today on 01332 477 070 for a free, no obligation eligibility consultation. Your business could be our next success story!