COVID 19 – Latest Update 14 December

Whatever the outcome of the current EU Free Trade Agreement negotiations, we know that a key tax incentive will help the UK economy to prosper in the years ahead – Research & Development (R&D) Tax Credits.

Although there is the possible ongoing constraint of EU State Aid rules to contend with, R&D relief will continue to help create an innovative and growth-focussed economy, and provide a welcome cash injection for many thousands of businesses to fund their development of products and services.

Indeed, subject to any EU subsidy rules designed to create a so-called “level playing field”, we can expect to see the UK government enhance R&D tax relief going forward.

This might include more generous cash back provisions, and possibly allowing the relief to be claimed on the same project as other government support such as grants and EIS funding.

According to the latest figures released by HM Revenue & Customs (HMRC) for the year 2018, £3.5bn worth of tax credits was paid out to around 40,000 companies.

What cannot be known is how many companies that are engaged in some form of R&D have not yet claimed. There is immense potential for claims.

Bishop Fleming’s R&D Tax Credit team has, over the years, uncovered numerous opportunities for clients to claim millions of pounds in tax credits on what sometimes may at first glance have not appeared to be eligible projects.

In particular, we know there is enormous innovation in the Food & Drink sector to formulate new products and to scale up production to meet increasing demand, and HMRC’s own statistics reveal an enormous capacity for more claims of the tax pie.

Manufacturing companies are also engaged in innovation, particularly brought on as a result of the pandemic.

As the Science Minister, Amanda Solloway, said this week, we now have a once in a generation opportunity to rejuvenate our R&D system, to unlock and embrace talent, diversity, resilience and adaptability, and to put our minds to work on powering up our country.

Bishop Fleming’s R&D tax credit advisors stand ready to help. They are not only claiming substantial sums for our clients, but are also engaging with HMRC and the Treasury to help develop tax policy in this area.

Finally, just to remind you that we are here to support you with your business, so if you need help in maximising the opportunities, or if you are feeling cashflow or trading pressure, please get in touch, and also check out our Business after Covid-19 Transition Hub.

Video: Meet our Technology, Innovation and Growth team
Meet our Technology, Innovation and Growth Team as they discuss how they can help those businesses in need.

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Vital measures in the Corporate Insolvency and Governance Act are being extended to continue to take the pressure off businesses dealing with coronavirus.

Could we see a one-off wealth tax?
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Furlough claim information to be public
As part of the third phase of the furlough scheme, HMRC will publish information about employers who claim for periods starting on or after 1 December 2020.

Check out our ever-evolving checklist of key dates and deadlines
December deadlines include the 14th for November’s furlough claims.

Webinar: Not another SDLT surcharge?
Watch our Brunch Bites webinar where Robert Bailey explains the changes to SDLT.

Bounce Back Better: Big Bakes Bakery
Kate Pace, Tax Executive and part of our Food & Drink team caught up with Charlie of Big Bakes Bakery to find out more about the business and how business has been throughout the pandemic.

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