Generous tax breaks for innovative companies
Don’t let the expensive of research and development hold you back – we can show you how to recover substantial costs through this unique tax credit provision.
Here’s What You Get
Suitable if You
- Are planning new or expanded R&D
- Engage consultants and other specialists
- Allocate existing staff to R&D
- Run an SME with fewer than 500 employees
- Employ over 500 staff
- Have an R&D project which is innovative and uncertain
BENEFITS FOR YOUR BUSINESS
Schemes for Small, Medium and Large
There are provisions for companies of all sizes. The scheme for SME companies enables them to claim back up to 33% of their R&D costs. RDEC applies to large organisations and provides up to 13% funding of development spend.
Facilitates Innovation
The cost of Research and Development can be prohibitive, but with this generous tax credits scheme, businesses of all sizes in any sector who meet the eligibility criteria can pursue R&D with significantly reduced financial risk.
Profitability Not Essential
Profitable companies can claim back up to 24.7% of their research spend. A break-even business can claim 18.85%. A loss-making SME can claim up to 33% of expenditure. RDEC Large Organisation (over 500 employees) relief is fixed at 13%.
INVOICE FINANCE: HOW IT WORKS
Application
Completing an R&D Tax Credits claim correctly and maximising the benefit is a complex task. Increasing tax relief fraud is causing HMRC to be more vigilant in assessing claims. Stellar Capital can help you assemble and submit your application.
Requirement of Uncertainty
The work must be intended to overcome the uncertainty of a proposed scientific or technological product or process. The outcome of the research must be uncertain as to whether it will be successful or not. If it is a foregone conclusion, then it will not be classed as R&D.
Qualified Personnel
The Research and Development must be conducted by professionals such as scientists, engineers or other staff with specific skills to demonstrate that the project requires specialised expertise and its attendant costs.
Acceptance
Depending on the agreement, either you or the partner collect the invoiced amount, the agreed fee is retained by the partner and the balance paid to you.
R&D TAX CREDITS: HIGHLIGHTS
- Open to companies of all sizes
- Making a loss is not an automatic bar
- Up to 33% credit for SMEs
- 13% credit for large companies
- R&D results need not be successful to qualify
OTHER OPTIONS FOR YOUR BUSINESS
Invoice financing is an extremely efficient method of optimising the value of your receivables but it is not the only one open to you.
Trade Finance and Purchase Financing
When you need to buy goods from suppliers who do not offer credit terms and demand payment upon shipping, Stellar Capital’s commercial finance partners allow you to order and receive goods by making the payment on your behalf. It also means you can take advantage of any early settlement discounts.
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Asset Finance
Investment in new plant or machinery can be substantial. Asset finance enables you to buy, rent or refinance significant assets without the up-front costs. Stellar Capital’s partners buy the equipment and supply it to you under a fixed term lease – extendable by mutual agreement – or as hire purchase agents, funding the purchase which you repay in instalments.
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Stock Finance
Tangible assets are another efficient source of funding, with money made available to you based on the independently assessed value of your stock and inventory. This adjunct to our invoice finance facility allows you to retain ownership while releasing working capital.
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Stellar capital is equipped to demonstrate the areas in which your operations can be improved to maximise value and profits.
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Stellar Capital is committed to helping our clients find the best solutions for every funding challenge.
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