One other key area which is often overlooked is tax relief for research and development (R&D). A range of businesses can claim this relief against their corporation tax bill for the relevant qualifying costs if they are either developing new technology, or are working alongside other firms who are doing so. Make sure you get some advice if you think you might be eligible for this.
Bringing in investment
If you are wanting to scale up your operations and expand your growing business once it’s off the ground, then outside investment could be a beneficial way of securing the funding you need.
The Seed Enterprise Investment Scheme (SEIS) offers tax relief to those willing to invest in small and growing companies like yours. You are required to have SEIS status in order for your business to benefit from this financing route. Your advisers can help you apply for this. Youwill need to drawup relevant business plans and forecasts, as well as a proposal for investors. You could, instead, pursue an opportunity with an angel investor, who may have useful experience and contacts that can help grow your business further, or more quickly. There are networks of these entrepreneurs you can be connected with, although you will need to be willing to give up part ownership of your company in many cases. This is something you will need advice on before committing to anything.
In summary
Spend some time with your adviser to discuss the particular financial support which is available to your specific type of company. Start by understanding the start-up and running cost expenses and allowances you can claim that will mitigate your tax bill. If you do need specific lump sum funding on a bigger scale, get the right advice for the best support for your needs which doesn’t leave you either giving up control of your brand new company, or saddles you with regular payment commitments that can impact your financial position and limit your flexibility as you start out.
Research and guidance are key from day one. There’s help out there for you so you don’t need to struggle or put yourself into debt to set up your business. Getting the right help, not just any help, is vital.
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