A very large portion of businesses and SMEs are unaware of many funding opportunities that are offered by the government. Financial investment and funding is arguably the most important aspect for a business in securing healthy growth and profitability. Hence, Genesis Innovations aims to bring awareness for these businesses by highlighting such opportunities and successfully acquiring finance for them through one scheme, the R&D tax credits.
Research and Development Tax Credits have been introduced by the government to increase R&D spending by giving businesses upto 26% of their spending back as a refund on their tax bill. The government benefits from the increased productivity which enhances the success of UK businesses and the economy as it leads to a higher degree of innovation and creates more wealth in the economy.
Since its introduction in 2000, approximately 240,000 claims have been submitted with £21.4bn being distributed in tax reliefs. The current market as of 2015-2016 saw total claims rise by 22% from the previous year and an increase of the amount claimed by 25% equating to £3.7bn.
In 2016-2017, the West Midlands region submitted approximately 3000 claims successfully and received £110m in R&D tax relief. This performance was well under the national average and is perhaps related to the lack of knowledge and understanding from SMEs on the availability of such funding opportunities. The R&D tax relief scheme is largely unexploited by SMEs with reports estimating 57% of SMEs being eligible in the West Midlands yet only 1% claim the tax relief. This means that nearly £84.2bn is yet to be claimed by businesses in R&D tax credits and only £2m is currently being owned (Catax). Genesis can help you grow your business and be among those who capitalize this opportunity.
Get Your Money Back with Genesis
Genesis Innovations helps businesses get their money back by identifying qualifying activities and costs that are eligible to maximize R&D tax credit claims. We have a 100% track record in securing R&D tax credits for our clients. On average, £50,000 is claimed successfully with the highest ever achievement approximating to £100,000. A recent example involves a client who is a leading supplier of consumer data in the UK. The client was exploring a solution for data transferring from their sales team to their customers within a short period of time whilst ensuring accuracy and quality of the data being delivered. Current applications were deemed to be too complex and expensive. This caused poor results for their sales team. A solution was found in a project that aimed to create a user-friendly interface enabling staff with no previous training in programming or data analytics to access data and easily answer the client’s queries efficiently. Genesis was able to assemble an R&D tax credit claim and the relief went into furthering the innovation processes for our client.
Our goal is to help businesses realize their potential in the West Midlands. We can achieve this by acquiring the right financing for businesses to increase their levels of success. Our vast experience will ensure successful R&D tax credit claims which will help your business grow. Click here to find out our approach and how we can help YOU in getting the finance you need.
The R&D Tax Credit Structure
The SME Scheme works by allowing the SME to deduct an additional 130% of its eligible R&D costs from its taxable income. Overall, businesses can get 25% of their expenditure on R&D back as a tax relief. For example, for every £100 you spend on developing a new product, process, or service, you can retrieve £25.
To attain R&D tax credit relief, the project that seeks relief must be related to the company’s trade – either an existing one, or one that you intend to start up based on the results of R&D. The SME must also be seeking to achieve an advance in science or technology, must be subject to scientific or technological uncertainty, and in its achievement, it must be conducted in a systematic and thorough fashion. The HMRC criteria surrounding R&D activities is very broad as it constitutes any risk taking by attempting to resolve scientific or technological uncertainties. R&D costs can include staffing, consumable costs, software, subcontractors, research contributions, and any other materials or consumables used in the R&D process. Overall, companies that spend in developing new or enhancing existing products, processes, or services are eligible for R&D tax credits through cash payment of corporate tax reductions.
Get in touch with us and we can help your business attain free financing!