When your business needs funding, what are your first thoughts? To talk to the bank? Finding funding is often approached in a traditional way but at the MPA Group, an advisory business specialising in helping its clients grow, we take a different route. We help our client businesses access additional cash through two tax incentive schemes: R&D Tax Relief and the Patent Box scheme.
What is R&D Tax Relief?
If a business invests in product or service development, HMRC regards this as innovation. Successful innovation projects could attract a tax credit of £26 for every £100 spent. Even if a business is loss-making, it can still claim £18.85 for every £100 spent.
Some businesses we speak to are unaware that the scheme exists, or don’t realise that they may be able to make a claim. Others are already making a claim for relief. In this latter camp, a whopping 90% of claims that the MPA Group sees during its free audit programme have been incorrectly calculated.
We often discover on delving a little deeper that many claimants find HMRC’s classifications of R&D activity difficult to interpret to the maximum advantage, resulting in thousands of cases of eligible activity being missed each year. However, with the right experience, it’s relatively simple. And given the potential tax credit at stake, well worth taking a second look.
And what about the Patent Box Scheme?
Many UK businesses base their business, or part of it, on intellectual property (IP). If a business is able to patent this IP, it will be able to reduce the Corporation Tax liability it pays on profits derived from that IP to a rate of just 10%, making a potentially significant contribution to cash-flow.
The MPA Group helps businesses grow by supporting them to achieve tax efficiency, find cash and build capital. If you’d like to find out how these above mentioned schemes might deliver cash benefits for your business, The MPA Group can offer a free evaluation on both the above opportunities over the phone.
Call them on 01234 912000 or send an email to firstname.lastname@example.org or visit