Bouncebackability - Not just for football managers
Tom VernerSend Tom an Email
Bouncebackability - Not just for football managers
Momentum’s ‘Rebound Support Service’ is helping innovative companies maximise their returns on investment.
Helping businesses run through the DNA of the Momentum Group, it’s what we do. In the early days of Momentum, I was privileged to be able to lean on close friends and business mentors for support at a time when growing business needed it most.
It was one of those mentors, Richard Starkey who advised me to get involved in R&D Tax Credits and since then the Momentum Group has grown to become one of the UK and Ireland's leading business consultancy practices that specialises in securing financial benefits for our clients through R&D Tax Credits.
Despite scaling up, I have never lost sight of the impact those friends and mentors had on me. Now helping others is something which gives everyone in our business tremendous satisfaction.
Therefore, when so many businesses were in a critical position as the pandemic tightened its grip on our economy, it was a natural instinct for Momentum to launch a service which could, in some cases, be the difference in a company trading through these challenging times or becoming another statistic.
We are all in this together and, at Momentum, we have been offering, and will continue to offer, free claims advice to companies during these pressured times.
Iain Dowie famously coined the phrase 'Bouncebackability' nearly 20 years ago and whilst time has moved on, the concept remains the same - bouncing back in times of adversity.
Our ‘Rebound Support Service’ assists businesses by maximising their uptake of all available R&D tax benefits offered by the UK government. At the last budget, Chancellor, Rishi Sunak pledged to increase spending on overall R&D to £22billion per year by 2024-25.
With businesses battling the twin challenges of the pandemic and the looming threat of a no trade deal Brexit, a successful R&D Tax Credit claim can be worth tens of thousands of pounds which could be a vital boost to balance sheets when its needed most.
It is also worth noting that the government has pledged to process claims within 28 days.
Our ‘Rebound’ team works directly with companies to conduct strategic reviews of their business to identify potential R&D and innovation opportunities, as well as reviewing previous claims to ensure all projects and associated expenditure have been captured the correct way in relation to PCRT regulations.
Often in uncertain times, businesses are driven to be more innovative and this work may qualify for R&D Tax Credits. For example, a number of companies joined the fight against Covid-19 by switching production to make medical items, PPE and hand sanitiser.
This work may have encountered a degree of technological and/or scientific uncertainty; therefore, it required a degree of R&D and it is right these companies receive the financial support they are entitled to.
Our ‘Rebound’ service is perfectly placed to thoroughly examine your R&D activities and associated expenditure to ensure every opportunity for support is explored. We understand that businesses will know their own sectors inside out, but it is often the case that they struggle when it comes to understanding what qualifies for R&D for this purpose.
There is not a lot of good news at the moment but I want to underline the fact that help is available for companies who put innovation at the heart of the operations and we would be proud to be assist you in availing of that help.
It is frustrating that so many businesses are either unaware of or don’t understand the tax credit system and how it can benefit them.
The uptake in claims remains stubbornly poor but it is remarkable how often when we go into a company that we discover work which qualifies for tax credit support being dismissed as routine day-to-day operations.
Here’s three things you might not know about R&D Tax Credits:
- The work that qualifies for R&D relief must be part of a specific project to attempt to make an advance in science or technology. The project must relate to your company’s trade - either an existing one, or one that you intend to start up based on the results of the R&D.
- To get R&D relief you need to explain how a project looked for an advance in science and technology, had to overcome uncertainty, tried to overcome this uncertainty and could not be easily worked out by a professional in the field. Your project may research or develop a new process, product or service or improve on an existing one.
- Claims can be made retrospectively which means you can claim for any accounting period which ended up to two years ago. This is good news for a business just discovering R&D Tax Credits for the first time but have carried out qualifying work in the previous two years. The UK Government has also committed to processing claims within 28 days.
New statistics published by HMRC in September reveal that a total of £105million was paid out to Northern Ireland businesses in R&D Tax Credits, up from £75million on the previous year.
The total number of claims stands at 1,615, however, Northern Ireland is still one of lowest regions for claims. The average received per R&D tax claim by companies in Northern Ireland was £65,015 which was an increase of 14% on the previous statistics, compared to those in London benefitting from the highest average claim of £129,865.
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