While many startups know about the advantages of the R&D Tax Credits, allowing startups to claim up to 33% of their development costs back in cash, very few know about the R&D Advance Assurance application, which is actually very beneficial for startups, here we will explain why.
Applying for R&D Advance Assurance, will give startups a guarantee that their R&D claim will be accepted (as long as the final R&D claim will be in line with what was discussed in the R&D Advance Assurance).
In fact, HMRC will confirm, once the R&D Advance Assurance is approved, that the R&D claim will be accepted automatically.
Applying for R&D Advance Assurance is great to help you in planning your cash flow in advance, to save you time to get approved for the R&D claim. In SeedLegals Term Sheet, you will be asked whether you got your R&D Advance Assurance in place - by confirming that, you will increase your investability, and it’s a great validation to show investors that HMRC has blessed your work as qualifying R&D activity.
And, when you’ve explained to the investors that their money will go further, with your being able to claim back from HMRC up to 33% of the amount you’ve raised, that means their money will go further, and you can get more customers and traction before needing to raise again.
Any questions? Click here to speak to one of our experts and start your R&D Advance Assurance application today!