HMRC Delays Cause Cash Crunch at UK Start-Ups
In the News
A number of UK start-ups have said they were forced to raise emergency funds in 2019 after sudden and unexpected delays to their tax credits.
The long delays caused serious concerns in the start-up community, which is already upset at plans by the government, which has promised to be “pro-enterprise”, to curb entrepreneurs’ tax relief in the upcoming Budget.
The delayed tax credits were part of a scheme to encourage more research and allowed small and medium-sized businesses to deduct 130 per cent of their research and development costs from their annual profit. In previous years, these credits were paid within six to eight weeks but in 2019 some delays stretched to months.
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