You won't believe it; HMRC give cash back
We’re always looking for ways for SMEs to save money. Naturally as accountants that comes in the form of tax and paying closer attention to the numbers in your business.
This month we are focusing on ‘what bugs small businesses the most’. And a ‘lack of government initiatives’ that stimulates growth in the SME sector seems to be one of them.
BUT!!!! Did you know there are sensible schemes available to small businesses that can not only save you money, but also pay you to carry them out?
One of these is a Research and Development (R&D) Relief or a tax credit by way of a cash sum from HMRC. If you are liable for Corporation Tax you could be missing out!
From 1 April 2012, the tax relief on allowable R&D costs is 225% - which means, for every £1,000 of investment your company makes, you could receive £450 off your corporation tax bill or as cash from HMRC if your company is not yet paying corporation tax.
There are other schemes like the Enterprise Investment Scheme (EIS) and Patent box which allow businesses to take advantage of tax reliefs.
The problem the majority of small businesses face is that they operate with all hands to the pump to drive their business forward. The day to day running of the business is prioritised over sifting through the HMRC website which can be like an encyclopaedia.
Like most things, dealing with tax and HMRC is complicated but that is where we come in. Dealing the changing demands of HMRC is our ‘bread and butter’. Advising on government initiatives that will save your business money is one of our main goals.
If you would like to consider using a professional accountant, have a chat with local AIMS accountant for a no obligation consultation that could set you on the right tracks to a lucrative future.
Remember; good accounting is good business.