Innovate to survive
Has the expression “Cash is King” ever been truer than it is now? We’ve always known how important it is to keep a tight control on cash flow, but perhaps the spotlight has never shone as brightly as it does now on that area of the balance sheet. What if there was a way to protect the continuity of the business, whilst also benefiting from a cash injection or a deduction in tax? Fortunately, there is.
You will have heard the expression ‘Don’t rest on your laurels’ many times. Most of us will say “but I’m far too busy to do something new” or “I’ll get around to it” and even “what we are doing is great, why change?”. The problem is just that – everything will change, and those businesses who don’t adapt will unfortunately be more likely to fail.
Recent history is full of these stories. Remember Blockbuster? A wonderful business until the world went digital and the idea of going to a video store became a chore. The rise of streaming services like Netflix led to the demise of a once industry-leading business. How about Kodak? At one time, the world’s biggest film company, it failed to move to digital photos because its film business was formally so important to how it was structured. It eventually became bankrupt in 2012 when more agile businesses who were prepared to innovate ate into its whole market.
Innovation is essential to safeguard the future of your business. Not only that, but you can be rewarded for trying. The UK is one of over 40 countries globally that offer an incentive to businesses in the form of research and development tax credits.
Administered by HMRC, it is the most generous business incentive that the government offers. If a business is taking steps to overcome technical uncertainties at its own cost, then it’s likely that the business will qualify for the incentive. Companies can benefit from up to 33% of their qualifying expenditure as a cash injection directly back into the business.
It can be equally important for young, agile businesses who need the cash rebate to give them runway to operate, as it is for established companies who depend on the tax deduction to ensure they can continue to create and improve products and services at a competitive speed of delivery.
Amplifi Solutions works with businesses across many sectors, including software, manufacturing, engineering and food & drink. Each of these industries has its own unique set of challenges and opportunities, both technical and commercial – that’s why we have industry experts as part of our team with backgrounds such as mechanical, electrical and software engineering, to ensure that we really understand your unique process and deliver a great result on your R&D tax credit claim, helping you to reinvest in your business.
In a time where uncertainty is the only certainty, we have been delighted to see a proactive response from HMRC. Submitted claims for small and medium sized companies are typically being processed and paid out under their standard 28-day turnaround time. This means that businesses have been able to access a cashflow injection when they need it most. As we all try to navigate our way through these challenging times, a strong cash flow will be crucial. So, at a time when cash is king, can you afford not to be innovating?
You can find out more about R&D tax credits at www.amplifi.solutions