5 Ways to Fund your Business Growth
Date: June 22, 2023The recent rise in corporation tax (for companies with profits of £250k and over), along with the increasing cost of living, has had a heavy impact on business owners across the UK.
Whilst many businesses have been forced to make cuts to various areas of their business, such as research and development (R&D), to counteract rises in energy, equipment and materials costs, others have turned to business finance options or alternative funding, as a temporary solution.
However, there are other options available that are closer to home than many businesses realise. Companies should take advantage of the government funding that’s available to enable them to harness their innovation and use it fund their business growth. Meanwhile, commercial property owners stand to benefit from tax relief schemes such as capital allowances and land remediation relief.
On a positive note, according to the Institute of Directors’ Economic Confidence Index, business confidence in the UK economy has slowly increased over the last five months.
In this article, we explore the various sources of innovation funding available, and how they can help propel a business forward.
1. The Patent Box
What is Patent Box?
Patent Box allows for a reduced rate of 10% corporation tax for profits from patented inventions.
Catax’s experts can support companies with:
- assessing eligibility for the Patent Box
- calculating where it can claim the 10% corporation tax rate
- compiling and submitting the claim.
Are you eligible for the Patent Box?
Do you currently own or are you planning on registering a UK patent?
If so, the Patent Box tax relief from HMRC comes hand-in-hand with patents and if your company is making a profit on its patented inventions, it can pay a lower corporation tax rate of 10% on those profits.
2. Research & Development (R&D) Tax Relief
What is R&D tax relief?
HMRC’s R&D tax relief scheme rewards businesses that invest in innovation.
At Catax (a Ryan company), our team of tax managers, chartered accountants and sector specialists can help companies to:
- identify qualifying R&D activity
- create a robust report for HMRC, in line with legislation
- receive the maximum tax relief available to fund future R&D and grow the business.
Are you eligible for R&D tax relief?
Are you developing any new systems or products, or have you amended any existing ones? Are you seeking an advance within your industry?
If so, you could well be undertaking R&D activity and be eligible for R&D tax credits from HMRC.
3. Capital Allowances
What are Capital Allowances?
Capital Allowances allow commercial property owners to claim tax relief on qualifying capital expenditure.
Catax’s Capital Allowances team can help companies to:
- identify qualifying plant and machinery, as well as embedded Capital Allowances such as heating systems or light fixtures
- address Capital Allowances during the purchase or sale of a commercial property
- undertake a review of legacy property portfolios.
Are you eligible for Capital Allowances?
Do you own/are you in the process of purchasing a commercial property?
If so, there could be a wealth of unclaimed Capital Allowances that your company can claim.
4. Grant Funding
What is grant funding?
A grant is a sum of money provided to an individual or organisation, usually by a government or other institution, with the aim of stimulating the economy. Winning a grant can fast-track and bring to market a company’s innovative ideas.
Catax’s specialist team support companies with:
- identifying all eligible grant funding opportunities
- creating and submitting a grant application
- project planning and management.
Do you qualify for grant funding?
Do you have any projects in the pipeline you are looking to fund? Are you aware that if your business is undertaking R&D, you can also apply for grant funding? The eligibility criteria varies depending on each grant call and funding body.
There is lots of grant funding available, from various bodies, so it’s something every innovative company should investigate.
5. Land Remediation Relief
What is Land Remediation Relief?
Also known as the Remediation of Contaminated Land relief, it encourages landowners to clean up and restore land on brownfield sites in the UK.
Catax’s tax relief specialists can support companies with:
- identifying if it owns any contaminated land or property
- calculating the amount of expenditure that qualifies for tax relief
- explaining how this tax relief scheme works.
Are you eligible for Land Remediation Relief?
Do you have a building or piece of land that contains asbestos or Japanese Knotweed?
These are just two examples of contaminants that are eligible for HMRC’s land remediation tax relief.
To discuss the above forms of innovation funding in more detail and discuss your eligibility, please click the button below: