Home » Opinions & Commentaries » Timely tax credit payments could be vital for business survival

Timely tax credit payments could be vital for business survival

As companies fight to navigate a course through the global Covid-19 crisis, a healthy cash flow could be critical to keeping staff in jobs, if not the very survival of the business. 

The Government has recognised the business community’s plight and has introduced a series of unprecedented support measures. However, a Northern Ireland based R&D tax credit specialist is urging the Treasury to ensure payments on claims are paid out within the 28-day timeframe, if not much sooner. 

Momentum Group Managing Director, Tom Verner said: “These payments could be worth tens of thousands of pounds to the companies who have been carrying out R&D work and have submitted a claim with HMRC. 

“This is cash which could be vital for these companies to maintain cashflow at this time. It is money which could keep the business operating, it is money which could pay suppliers and it is money which could keep people in jobs. 

“It’s a concern, that as the Government implements a series of emergency measures designed to save jobs and businesses, these tax credit payments could be delayed. Again, I want to stress the importance of the Government making payments with the 28-day timeframe.” 

Meanwhile, Mr Verner has repeated Momentum’s offer of issuing free R&D tax credit advice to all manufacturing companies who have switched their production to make medical items, clothing and sanitiser for the NHS to fight the Covid-19 outbreak. 

The government has issued a rallying call to businesses to join the effort in making life-saving medical instruments. Recently Health Secretary, Matt Hancock even took to Twitter: “Calling all manufacturers who can support our National Effort for #coronavirus ventilator production – to help, contact Government Business Support team.” 

Tom Verner said: “This is a time for everyone to work together and we owe a debt of gratitude to the companies who have responded to the Government calls for help. 

“The Momentum Group wants to play its part as well and we will offer free advice to any company who has now joined the effort to support the NHS. 

“This process will have required a degree of research and development work and it is right these companies receive the financial support they are entitled to. We will play our part in identifying the R&D tax benefits they are entitled to and advise them accordingly.” 

There has been a similar response globally with US tech giants Amazon and Microsoft donating millions to business communities. Chinese e-commerce company, Alibaba is distributing millions of masks as well as protective clothing and testing kits to every country in Africa. In France, luxury goods company LVMH, which owns Bulgari, TAG Heuer and Tiffany among other major brands is now making hand sanitiser.