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Combating COVID-19 with resilience

Cash Generative Opportunities via Global Investment & Innovation Incentives (Gi³)

During this period of disruption, the recurrent theme emerging through conversations with businesses affected by COVID-19, regardless of size or industry is an enhanced focus on cash balances.

To help businesses access cash-generative incentives and make use of the UK Government’s stated ambition to accelerate reliefs for areas such as R&D, Patent Box and Capital Allowances, we have prepared the attached UK Gi³ COVID-19 response document, which can be downloaded, to help businesses understand how they can access immediate cash generative opportunities, and to also help them consider processes for future claims to help reduce disruption caused by COVID-19. In particular, the document focusses on obtaining refunds on taxes already paid through R&D, Patent Box and Capital Allowances claims, and receiving tax credit amounts and grants in cash.

Key cash generative opportunities

We are currently assisting our clients in pursuing cash generative opportunities across the following key areas:

  • Obtaining refunds on taxes already paid
    • Uplifting historical claims, making first time claims and accelerating claims through refiling tax returns to secure cash-tax repayments.
    • Companies are able to amend prior period tax returns for two accounting periods for R&D and Patent Box, and can access expenditure further back for Capital Allowances.
    • To support companies through COVID-19, HMRC is prioritising issuance of cash payments where these are due.
  • Obtaining cash back for loss making businesses
    • R&D credits for large companies can be received in cash.
    • Cash credits are available for Enhanced Capital Allowances and Land Remediation Relief.
  • Advancing 2019/2020 claims to reduce current taxes due and in some circumstances Quarterly Instalment Payments
    • Advancing the preparation of Patent Box claims or Capital Allowances claims for recent capex can help in reducing Quarterly Instalment Payments.

We often find that many businesses have not taken full advantage of the R&D, Patent Box and Capital Allowances regimes. Regardless of the reason for not optimising these claims in the past, generous time-limits may enable many historical positions to be amended.
 

How can we help?

Our specialist Gi3 team can help in pursuing these immediate cash generative opportunities, as well as assisting businesses adapt processes to optimise future incentives. Our specialists, working in conjunction with our market leading claims technology solutions (myGI and Data Classifier), enable companies to maximise coverage and enable efficient and contemporaneous tracking of activities and spending to best optimise Gi3 claims.

Find out more about our Gi3 Technology Solutions

About Us

The award-winning Deloitte’s Gi3, with a coordinated national and international presence consisting of skilled experts in finance, tax, patents, technological, construction, engineering and scientific fields.

Find out more about why Deloitte is considered one of the leaders in the industry.

Key contact

Stephen Perry

Stephen Perry

Partner

Steve leads Deloitte’s Consumer Business tax depreciation practice, and advises property-rich businesses in all aspects of capital allowances and associated reliefs, including the deployment of system... More