Why firms need to now get serious about accessing the funding they’re entitled to

By PM+M Chartered Accountants

16 Dec 2020

john-connor-pmplusm.jpg

By Jon Connor, manager in PM+M’s Research Development Tax team.

2020 has been a year like no other. In January, no-one could have imagined how the world and the economy would have been so devastated. However, there is light at the end of the tunnel and businesses are gearing themselves up for a brighter 2021.

In the recent Spending Review, the chancellor made a big deal of the UK’s place on the global stage – especially in terms of the government’s £14.6bn worth of funding investment in the science and technology sectors. It sounds fantastic but given that many manufacturing and engineering companies halted production for at least two to three months, or massively scaled down their R&D projects to focus on standard ‘out the door’ orders, it is likely that R&D claims incorporating a period from 1 April 2020 will be lower than the corresponding year from 1 April 2019.

However, what’s now key is that this investment actually happens and businesses access it. My gut feeling is that automation and robotics firms are likely to be big winners as companies across many sectors will be aiming to ensure that if factory shutdowns do occur in the future then some form of the process can still be undertaken via robotics.

On a broader note, many companies are still not aware of what R&D tax credits they are entitled to. It’s an issue that I come across with new clients on a daily basis. Some of the main reasons include because they perceive their activities are not innovative enough, they haven’t been advised on the benefits of what an R&D claim bring to their company, and because they don’t want to bring their company onto HMRC’s radar. The last reason is one that we as firm don’t agree with as our ‘nothing to hide’ upfront disclosure approach ensures that we get the maximum out of every eligible R&D claim.

The benefits of a successful R&D claim can be game-changing and never more so than now. They deliver cash repayments for loss making companies by funding future technology and development projects; they secure corporation tax savings for profitable companies and corporation tax repayments for backdated claims; and they provide tax relief for projects that may require significant time investment.

Another source of funding which many businesses are still overlooking is the Coronavirus Business Interruption Loan Scheme (CBILS). It was introduced at the start of the pandemic and has helped over 50,000 firms navigate the past few months with over £1bn of loans funded. However, time is running out as the scheme is due to end on 31st January. As I said, things are looking better – especially thanks to the vaccine roll out – but we are not out of the woods.

The first three months of 2021 are expected to be choppy. Imagine a scenario where you suddenly lose your biggest client overnight: What would your business look like? Would you have enough cash reserves to see you through? This is a very real possibility for many companies so it seems nonsensical to not access available funding like this as it would, in all likelihood, secure your long-term future.

To sum up… explore your R&D entitlements and investigate your CIBLS options but make sure you have enough time to go through the application process via an approved lender.

{mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-fareast-language:EN-US;}

Latest news

1

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin