R&D Tax Relief Proves To Be A Lifeline During COVID-19
Edinburgh Chamber members Access2Funding have submitted over £5.4m of R&D tax relief to HMRC for SMEs during the COVID-19 pandemic.
This milestone contributes to the expansion of Access2Funding across the UK, who have welcomed 8 new staff members since March. The company is set to double their team by the end of 2020, and are currently hiring for new positions in the Scotland, the North East, Bristol, and the Midlands.
Suzy Carter who head up Access2Funding in Scotland ““It has long been the case that smaller companies in particular have not understood the R&D tax credit system or the scale of the funding it could release to firms. The scheme was introduced in 2000 by the UK government to stimulate and reward innovation across multiple industry sectors. But companies very often do not realise that what they are doing would qualify for tax credits under the scheme.”
SMEs can claim for staff costs related to Research and Development projects, including pensions and National Insurance, as well as up to 65% of any sums paid to subcontractors. Any SME that is liable to pay corporation tax, even if it is loss-making, can claim, provided it has less than 500 staff and it’s turnover is under €100 million.
R&D tax relief became a lifeline to MBP Ltd, a film production company based in Edinburgh “We got the money back just before the COVID-19 lockdown happened, and that affected our contracts and our income massively. R&D tax credits gave us a buffer, some cashflow, to allow us to get through the initial weeks. Without it, the business would be in a very difficult place”.
Matt Brown, MD of MBP also urges other businesses to find out if they’re eligible for the HMRC initiative “Anybody that has a limited company should pick up the phone to Access2Funding. I didn’t think we would be eligible, and I’m sure that there are many companies out there like us. It was such an easy, painless process, and I cannot recommend them highly enough. The opportunity to get that extra cashflow in the business right now, it’s got to be a no-brainer”.
Find out more about the innovative projects from MBP Ltd which were eligible for R&D tax relief by watching their case study below, talk to Suzy Carter about your own eligibility on 0333 990 0125, email@example.com