No matter the financial wellness of your organization, there's normally the need to save just a little funds where probable. Possibly just about the most satisfying approaches to save a little bit revenue is inside the kind of tax relief - either paying much less in taxes or having dollars back. You can find schemes out there which can enable fintech corporations do just this but quite a few are missing out. So how do you understand if your corporation is eligible?

Smaller small business relief rate
1 change that comes into force this April will be the transform to the tiny company relief price that was announced by then Chancellor George Osborne back in the 2016 Spending budget. This relief, generally known as the SBRR, was doubled from 50% to 100% final April.

Alongside the price becoming raised, the threshold was raised from £6000 to £15,000 for the reduce price and from £18,000 to £51,000 for the regular price. The outcome of this will likely imply some six,000 tiny corporations will be paying no tax and another 250,000 will see their tax bill reduce.

R&D Tax Credit
Probably the biggest tax relief accessible to businesses that are becoming underutilised is definitely the Research and Development Tax Credit. This scheme was set up back in 2000 by the government to encourage research and development across the country by giving a substantial tax relief to qualifying project costs.

The HMRC R&D Tax Credit scheme currently has two tiers - compact and medium enterprises (SMEs) and large companies. For SMEs, the amount of credit they can receive for the work that they are doing is 230% from the costs. So, for every £100 spent on R&D that qualifies under the scheme, the business can claim back that £100 plus an additional £130.

SMEs are qualified as enterprises with much less than 500 employees and an annual turnover of less than £100 million or a balance sheet of less than £86 million. Companies that fall outside this definition are classed large firms and can claim up to 130% of qualifying costs, as long as they spend more than £10,000 a year on research and development.

Does your work qualify?
Lots of fintech companies think their work doesn’t qualify but the very nature from the ‘tech’ side on the organization means they are potentially on the list of qualifying projects. Among the main criteria for qualifying projects is that they are inside the area of either science or technology. This means the development of new technologies or the advancement of existing tech can both qualify under the scheme as long as they meet the other criteria.

The project does need to be inside the area that the business enterprise operates in - so a fintech business likely wouldn’t start working on a revolutionary new recipe organising software! But if the project is a clearly defined 1 with aims and processes and is in the area that the small business works in, then there is a good chance that it can qualify. The people working on the project also have to be qualified for the task, not simply slotted in to fill out the numbers.

What can you claim for?
The other main question is what can providers claim for in regards to this R&D project? The main thing is the cost of salary for any members of staff working on the project. If they work 50% of their time on the project and 50% of their time on something else, then only the half spent on the project would qualify. Under the same definition, you can claim for materials used in the project, power and other utilities consumed for the project and even the cost of software or hardware purchased solely for the purpose on the research project.

Why providers are missing out
On the surface, this might seem like a specialist tax relief that doesn’t really apply to a fintech organization and this is why many firms are missing out. Yet inside the year 2013-14, there were over 16,000 claims under the scheme and the payments totalled some £800 million. So how do you understand if your organization can qualify?

One of several easiest techniques is to engage the services of a organization such as Easy RnD to assess the research and development work your enterprise is doing and see if it qualifies under the scheme. As experts within the field, the company can quickly look at what qualifies and what costs you can claim for, even processing the claim. Several of their clients receive a tax relief settlement in as small as six weeks.

You will need some basic information about the projects that might qualify under the scheme for them to carry out the claim. Questions such as ‘how do I find a business registration number’ can also be answered by them to enable you prepare for your claim. And within a short time, you can know if you are due the relief and can be saving money for your business.