Areande Tax Specialists lead innovative boost for thousands of UK businesses

1. Areande Tax Specialists lead innovative boost for thousands of UK businesses Areande HMRC Tax Specialists are preparing to support more of its clients with their seamless and innovative way to claim tax relief on research and development, as Britain prepares to innovate its economy out of recession. The government revealed an astonishing 86% of eligible innovation tax relief in 2019 went unclaimed. The UK has now begun its shift to a new economic environment as Boris Johnson told the country it was time to go back to work. The inherent risks to firms during Britain's transition period to exit the EU has now been enhanced with the fallout of the Coronavirus Pandemic. The year 2020 is likely to be the beginning of a very difficult period up and down the country as it introduces new challenges that force businesses to use new innovative ways for survival and growth. As part of this challenge, leadership teams are looking for new seamless and innovative ways to manage their cash flow, adapt their business model, and rejuvenate their organisations in a new state of financial vulnerability. Many have begun to dig deep into their financial reserves in an attempt to paper over the losses but still need to deliver on the business needs of their customers and set out a financial plan on what they do next. While this year has introduced new vocabulary such as ‘furlough’ and ‘key workers’, it has forced a new norm of wearing masks and remaining two metres apart from our peers. It has changed the way we work and more importantly, how we do business. The furlough scheme was announced by the Chancellor of the Exchequer Rishi Sunak on 20th March 2020 and is estimated to cost the government £60 billion from March to October. It’s purpose is to retain jobs in the UK, and he promised to send workers back to work when it was deemed safe to do so.

2. While the furlough scheme is good for workers, the tax relief schemes from HMRC can be good for business. It will allow businesses to create an effective tax plan and limit the financial impact of the coronavirus pandemic after such a turbulent and unprecedented period. For both large and SME (Small or Medium sized Enterprise) businesses throughout the UK, significant expenditure is related to research and development. The UK government reported £37.1billion of research and development costs across the UK in 2018 (around 1.7% of GDP), with expectations this will rise to 2.4% of GDP by 2027. However, since its inauguration in 2000, only £26.9 billion has been claimed overall and in 2019 86% of innovation tax relief went unclaimed. Over time, organisations have begun to recognise the benefits for themselves, with claims increasing each year, but it is clear that the support of specialists in this area could become vital for organisations in their battle to get the most out of their finances and prop up the UK economy by bringing this amount of cash back into circulation. The UK government has been a strong supporter of innovation through tax incentives and direct spending to encourage it. They have provided full information on which projects are eligible to be claimed, and while awareness is increasing there are tax specialists available to help all businesses across the UK. While this does not allow businesses to recover all of its losses, research and development tax relief is one platform that will allow businesses to reduce the financial impact after such a turbulent and unprecedented period experienced by many. Areande - a tax specialist group – offer a seamless and innovative way to claim corporate tax relief in areas such as research and development and capital allowances. They offer a change from the typically long and manual process by mixing their first of a kind technology software with industry leading subject expertise to streamline the relief process and claim back as much as possible with minimal effort. Typically, this has allowed their clients to deduct an extra 130% of their qualifying costs from their yearly profit, (on top of a normal 100% deduction) to result in a 230% deduction in their tax liability. Even further, if the company is loss making, they can claim a tax credit up to 14.5% of the surrendered loss. The scheme has allowed hundreds of businesses to recover millions of pounds in a period that will allow them to make the investment required for their future success. While the future may look bleak to some, businesses can learn from the past that the secret to success and survival is to be proactive in the market and be innovative with solutions. Such businesses will surround themselves with experts such as Areande and make the most from the resources and schemes they are eligible for. Areande rewards its innovative clients by providing a platform to fund their future projects in research and development by claiming back its costs from HMRC and reduce the financial hole from the impact of the coronavirus pandemic. The UK government is building even more support for research and development in its commitment to support innovation as a key part of its economic road to recovery from the coronavirus pandemic. To find out how much you can claim – click here.