A Midlands accountancy firm has unlocked more than a million pounds of tax reliefs for companies struggling during the COVID-19 pandemic, in some cases preventing them from going out of business.
Prime Accountants Group, which has offices in Solihull, Birmingham and Coventry, has recovered a total of £1,008,612 in research and development (R&D) tax credits for its clients since the start of the pandemic.
Prime secured £250,000 for one client and in a second case, recovered £80,000 for a technology company which prevented it going out of business.
R&D tax relief is available to businesses which are looking to research or develop an advance in their field and can be claimed by a range of companies, even if the project is unsuccessful.
Kevin Johns, Prime’s managing director, said the scheme was a great example of why businesses should invest in the future if funds allow it.
He said: “Lots of people think research and development is about people in white coats in a laboratory – it’s actually about looking at anything which makes your business more efficient.
“We’ve managed to save hundreds of thousands of pounds for clients over the last year. We saved £250,000 for one client and £80,000 on a second, which was on the verge of going bust.
“We suggested making an R&D claim on their behalf and only charging for our work if we were successful. We were – and that was the difference between that company staying afloat and going out of business.
“It shows there are still opportunities to claim money back from the government. R&D is one of the most common tax reliefs, as there are not many ways you can get HMRC to give you money back!”
Kevin said the opportunities for companies which are in a position to invest their way out of the pandemic are great – for example, the 130 per cent ‘super deduction’ rate relief for plant and machinery investments made from April 1, 2021 until March 31, 2023.
“My message would be to invest now, where you can,” added Kevin. “There will also be a lot of opportunities to buy businesses as, sadly, some will not make it through the pandemic unscathed.”
For more information about Prime Accountants Group, visit www.primeaccountants.co.uk or search for Prime Accountants Group on LinkedIn.