Sustaining growth through R&D tax credits
As businesses strive to recover from the financial impact of Covid-19 restrictions, they may face cashflow challenges, so an injection of cash may be critical in the short term.
Long term there is also still uncertainty in the agriculture sector with regard to trade deals and a shift in subsidies towards business owners who adopt “environmental” and “public good” policies and projects.
So how can R&D tax credits help you, and what are they? R&D tax credits are a form of tax relief (potentially a tax refund) available to limited companies that are undertaking qualifying projects. Short term they can provide vital cash to companies (farming and diversified trades) which can be reinvested back into the business to encourage investment and competitive innovation within the industry, to enable growth.
We can help by breaking down the technical R&D guidelines, and explaining the reasoning behind R&D tax reliefs in simple terms.
During the year to March 31, through a collaborative approach with our clients, we have identified qualifying expenditure of over £280,000 resulting in a tax benefit of over £80,000 for our agricultural clients.
Across all industries during the same period, over £4 million of expenditure has been identified resulting in a tax benefit of over £1 million.
Paul Brown, tax partner at Whittingham Riddell, Shrewsbury
