WHAT IS TAX CREDIT FUNDING?
R&D Tax Credits are designed to foster innovation and boost expenditure on innovative activities. They aim to promote and support companies in maintaining a leading position within their respective industries. This scheme offers a lucrative government tax incentive by crediting your business with a proportion of your R&D costs. However, there is typically a significant delay between filing your claim and receiving tax relief from HMRC. Tax funding provides access to your R&D tax credits before HMRC processes the payment.
Capital Allowance tax funding is another service that helps you unlock potential tax rebates faster than through HMRC. This method involves securing a short-term loan against future tax refunds, effectively reducing the waiting period associated with HMRC.
WHY USE TAX CREDIT FUNDING?
R&D Tax Credit funding is a financial solution that allows your business to use future R&D Tax Credit payments from HMRC as collateral. This aims to provide your business with immediate access to affordable financing. HMRC can take several months to process R&D claims. Considering other factors, it might take even longer for many SMEs to receive their Research & Development Expenditure Credit (RDEC) from the Government, especially since claims can only be filed at the company’s financial year-end.
Similarly, Capital Allowance funding can be invaluable for many businesses, enabling them to receive future tax rebates in advance. This unlocks working capital, eases cash flow strain, and allows reinvestment back into the business at crucial times, aiding in achieving objectives and overcoming bottlenecks.
By receiving your tax credit claim in advance, you can reinvest in new or ongoing projects and research, providing you with a head start and a competitive edge.
HOW CAN WE PROVIDE TAX CREDIT FUNDING?
STax maintain strong relationships with third-party lenders, offering preferential rates and expedited processes. Our proven track record with HMRC and industry expertise have built trust with our partners.
Our technical experts will prepare a comprehensive report on your behalf, ensuring you receive the maximum tax benefit available. This enables you to focus on your business while we manage the complexities. Thanks to our in-depth understanding of HMRC’s guidelines, we have successfully secured additional tax benefits for businesses that previously managed their claims internally or through their accountants.
Our 4 step process
Frequently Asked Questions
Typically, 60 to 80% of the tax credit or rebate can be funded. However, as each case is unique, we can provide a bespoke illustration on a case-by-case basis.
Every situation is assessed on its own merit; no two cases will be the same. Therefore, each case presents its own level of risk, and it is therefore important we review the background beforehand.
Yes, we are part of EMW Law and can therefore assist with preparing any required legal charges for funding security purposes.
No, we use our trusted partner network to ensure you gain the best possible value and make sure you are looked after throughout the process.
Yes, we can undertake the engagement to review and prepare your Research & Development or Capital Allowance report.
