Timing is everything – innovative companies take note
Whatever business you are in there are some things that rely on you meeting deadlines or simply getting your timing right. If your timing is off you can miss out on all sorts of things .... it's that simple!
I was just about to clamber down from the upper deck of a bus when my phone rang. It was an unknown number so despite being in the midst of juggling my laptop and a wad of papers into my bag, curiosity got the better of me. I managed to get the phone to my ear (obviously no Bluetooth or earphones at the ready).
It was a sales call about the Great………Show. I said “now is not a good time to talk, I’m just leaving a bus to enter the underground, please would you call me back tomorrow?” Undeterred the caller said “OK let’s have a two minute chat now to see if this is of interest or not” and proceeded into a sales pitch. By now the two fingers, I’d managed to hook around the strap of my bag, were killing me and the rest were about to let papers fly from the grasp of my remaining fingers. So I said “this isn’t something I can consider now for reasons I’ve already explained.” The response came “so clearly this opportunity is not for you then!” I said “no probably not.” Actually it might have been of interest, but their timing was so bad that it was much easier to just say “NO”.
Over ardent sales calls aside, companies that want to reap the benefits of the very generous UK R&D tax credit schemes and their advising tax accountants, need to take more note of timing. There is a rigid cut off point to get a claim in. If you’ve not claimed your R&D tax credits within two years of the accounting year-end in respect of the year in which you incurred R&D costs, the benefits are lost forever.
I’ve come across companies that have put looking into R&D tax credits on the back burner, thinking they will do it later. Naturally they are gutted when they find out they have lost thousands of pounds of investment that they could easily have secured, just because they didn’t take action at the right time.
In the latest HMRC stats which are for the year 2016/17:
- the number of R&D claims submitted more than doubled
- Small and Medium Enterprises (SMEs) claimed an average of just under £54,000 per company
- £1.7 billion was paid out under the SME R&D tax credit scheme, by far the largest amount for any year, ever.
Read the latest HMRC stats here.
Find out more about R&D Tax Credits here.
Are you ready to find out if you qualify or how much your R&D claims could be worth?