The current increase in running costs combined with a 200% rise in the unit rate of your electricity bills is no doubt serious cause for concern for you and your business. We’ve been speaking to several clients about how they might save money or reinject funds into their organisations to offset these increases. One of the ways to do this is through Tax Relief.
There are several Tax Relief schemes available:
- Research and Development (R&D) Tax Credits
- Property Tax Relief including Embedded Capital Allowance and Land Remediation Relief
Here’s a brief summary of the options available and some examples of how your business might be eligible.
R&D Tax Credits
If you’ve recently carried out a technical or scientific advancement as part of your business activity you may be eligible to claim tax relief for any direct or indirect costs related to the project. E.g., staff, materials, heat and light or subcontractor costs.
Examples include: trial and error to reverse engineer an obsolete production technique, packaging development in a food manufacturing plant or the development of apps or web services.
Embedded Capital Allowances
If your business is about to acquire or build a commercial building (or have done so in the last two years), if you are going to be/have already refurbished or kitted out commercial buildings or rent out commercial buildings to other businesses, you may be eligible to apply for embedded capital allowances.
Examples include: mezzanine flooring, air conditioning, electrical work, moveable partitions, solar panels (when purchased through a hire purchase agreement), refurbishment etc.
Land Remediation Relief
If you have acquired land which has been contaminated as a result of commercial/industrial activities, you may be eligible for cash credits against expenditure incurred in removing the contamination.
Examples include: Cost of removing building foundations from any previous occupation, asbestos removal etc.
When’s the best time to start?
There’s no time like the present! As there’s just over 10 months until the end of this tax year there’s plenty of time to gather all the necessary information so now is the time to start the application process. For many of the schemes (R&D and Embedded Capital Allowances) you are eligible to claim for up to two previous accounting periods and so there is a rolling two-year deadline for submission.
How we can help
BCR Associates will connect you to our carefully selected supply chain partner, who will help you to gather all the necessary information and analysis to identify the exact areas of tax relief that you may be eligible for as well as collate all necessary documentation for your application. Not all businesses are eligible for all tax relief available so our partners will assess your business meets the eligibility criteria and manage the application process from start to finish, carrying out site visits where applicable. Our specialists are an award winning ACCA regulated firm, who have an excellent success rate with HMRC. They are happy work alongside your current accountant or independently and will only proceed when they feel that an application will be successful and consultancy fees are only due if relief is secured.
To talk to an expert about your Tax Relief application, get in touch on 03330 433 233 or email@example.com.