Enrich your cashflow in 2022 through R&D Tax Credits

For startups and SMEs, a new year welcomes a re-energised team hungry to elevate the success of their business.

But to hit the ground running this January, many of you may be contemplating ways to revitalise your existing cashflow.

To reach your growth potential, the momentum of research and development (R&D) must be spurred by a stable funding strategy.

I know what you’re thinking. Easier said than done!

The truth is, a surprising amount of R&D-intensive businesses are missing out on an annual source of funding that’s non-dilutive and totally free.

This funding scheme is known as R&D Tax Credits, and if you’re developing an innovative product or service, it’s a vital contributor to your cash flow.

If you’re already claiming r and d tax credits, don’t go anywhere just yet. Our experts at Claim Capital often see that SMEs are undervaluing the size of their r & d claim and missing out on thousands.

This blog is going to share the tips you need to kickstart 2022 with an optimised cashflow and access the maximum benefit from your r&d tax credit claim.

💰 R&D Tax Credits, in a nutshell

R&D Tax Credits offer startups and SMEs the chance to claim back up to 33% of capital spent on research and development, after their first financial year.

This substantial portion of cash, gained from R&D Tax Credits, provides the opportunity to reinvest into growing and scaling your business, without sacrificing equity.

So, which businesses are eligible for r&d tax relief?

Fortunately, companies of all sizes and industries can claim r and tax credits! The only requirement is that they’re undertaking research and development - activities that innovate and introduce new products and services, or improve existing offerings.

There are two branches that comprise the overarching R&D Tax Credit scheme, and determine how much money you can reclaim.

The first is SME R&D Tax Credits, which is the more conventional out of the two due to its accessibility. The qualify for r&d tax relief under the SME scheme, companies must have: