Are you working on a project that intends to improve your service or product? Have you tried to find a solution to technical uncertainty? Is your project seeking scientific or technological advancement? And do you need funding for your businesses? If the answer to these questions is yes, you don’t need to worry about it. The UK government values innovation and provides R and D Tax Credits to reward businesses involved in research and development projects and encourage companies to work more towards bringing scientific or technological advancement. R and D tax credits scheme is an exceptionally profitable source of Funding for innovational projects, which enables you to get up cash credits worth up to 33% of your eligible expenditure.
However, you can claim your R and D tax credits at the end of your financial year according to HMRC’s guidelines, which causes problems for companies in need of funding to maintain their cash flow before their accounting period. This blog will elucidate the most advantageous solution to this problem.
Innovative projects usually don’t pay off soon; it requires a lot of patience to develop something new and requires a considerable amount of investments, immensely disrupting cash flow. R and D tax credits are highly beneficial for companies indeed as they help you maintain cash flow and provide you with an opportunity to reinvest in R&D. However, there’s a huge time gap between investment in research and development and getting R and D tax credits. The easiest solution for instant funding for companies working on research and development before applying for R and D tax credits is Advance Funding from R&D consultants.
What is Advance Funding?
If you are eligible for the R and D tax credits claim and need funding, you don’t have to wait for your following R&D claim. What you can do is get Advance Funding from your R&D consultant. Many R&D consultants provide R&D advance loans which you can give back once you receive your credits from HMRC. This is the most convenient way to access funds sooner and reinvest them at a critical time.
What is Advance Funding?
Whether you are already claiming R and D tax credits or claiming for the first time, you can contact R&D consultants, and most likely, they will help you access advance funding on your claim. If you are considering claiming the R and D tax credits for the first time and are doubtful about the eligibility for the claim. In that case, our R&D consultants can help you assess your eligibility and prepare the claim.
Not every R&D consultant offers advance funding on R&D claims, so it’s better to check with the consultant if you are planning to get advance funding in addition to the R and D tax credits claim. Some of the R&D consultants provide up to 80% advance of the claim upon submission of the R&D claim to the HMRC. R&D advance funding can be explained in a few simple steps:
1. Review
The first R&D consultants will get to know your business in detail to review your business and assess the requirement. In this way, they’ll find suitable options for funding your company.
2. Eligibility Checks
The team of R&D consultants will assess your eligibility to see if you meet the prerequisites of the Funding and your history of R&D claims.
3. Submission of Claim
If you successfully meet the eligibility criteria, your estimated R and D tax credits claim value will be calculated. Then, the R&D consultant will put together your claim and submit it to HMRC on your behalf.
4. Advance Funding Offer
If you have already made an R&D claim, your documents will be closely reviewed, and you’ll get an advance funding offer; it is up to you if it suits your requirements, then you can accept it.
5. Receive Loan
You might receive your loan within a few days if you accept the advance funding offer against your R and D tax credits.
6. Repay
Upon receiving your cash credits from HMRC, you’ll repay the advance funding along with the fee.
Why Should You Get Advance Funding?
Advance Funding can be really beneficial for your company
- The Advance Funding can be accessed at any time during the accounting period.
- Advance funding is the faster solution for getting funds in a few days.
- It reduces strain on cash flow.
- Short-term and efficient alternative to investors and equity loans. It protects your equity by providing enough funds to streamline cash flow without selling equity.
- Advance Funding does not involve any long-term commitment or complicated legal obligations.
- It helps you invest more in innovation to increase the size of your R&D claim significantly.
- Advance funding can be used in hiring more staff or getting equipment to carry out research and development, boosting innovation.
- The cost of advance funding is pre-agreed, so you’ll have a precise estimate of what you have to pay back in a transparent manner.
Want to claim R and D Tax Credits?
If you are considering claiming R and D tax credits, get in touch with our R&D consultants. Our accountants and R&D consultants work closely to trace your eligible expenditure and gather information to prepare maximised claim for you in a few simple steps!