Investing now for growth tomorrow

There are those out there who believe that the government is only interested in helping out big business; about the big ticket new stories that will make the headlines. They’ll have you believe that they aren’t interested in small businesses.

If that was the case why would the following schemes exist:

  1. Growth Vouchers
  2. Growth Accelerator
  3. Manufacturing Advisory Service
  4. R&D Tax Credits

All of these enable SME businesses to get funding and support that will help them grow.

For the government, it’s an easy choice.  They provides grants and funding to your small business now.  You invest the money in support, in training and in advice and you grow your business.  Over time you need to employ more staff as you put into practice the advice provided.  Those people pay taxes.

In time, your business grows and so do your profits.  As your profits grow, so does your Corporation Tax bill

The government then has more money than it did before.  They’ve made an investment and it has earn’t interest for them.  Why would they not do this?

So who can claim this money?

It varies but most small businesses can claim under at least two of these schemes.  I’m not going to give you all the scenarios and I am sure you can follow the links and see which you are eligible for, but let me give you a couple of examples:

Startup producing a new craft beer

Start ups cannot claim Growth Vouchers but they can claim the others.  The Growth Accelerator programme and Manufacturing Advisory Service will provide funding to help with growth coaching, with leadership & management training and marketing support to grow your business. The time and investment in developing the recipes for the beer can then be claimed under the R&D tax credit programme.
Support could add up to tens of thousands of pounds.
20 person industrial lighting firm
If they’re sensible and do these in the right order, this firm could claim Growth Vouchers (has to be first because you cannot apply for this if you’ve received other government grants in the last three years), then Growth Accelerator.  If they make the lights, the MAS funding can be claimed and then tax credits applied for if they are developing a new type of industrial lighting.  If they are a “me too” brand, they cannot claim the latter.
Again an injection of tens of thousands could be made into this business to help them grow.
I hope this proves useful for you and helps you find growth support that will help you grow your business.  If you’d like some support or to talk this over with someone beforehand, give me a call on 020 8634 5911 or email me and I will be happy to help.
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