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Leyton offers business advice to companies affected by COVID-19

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24 March 2020

Exploring avenues to aid business cash flow

COVID-19 has already resulted in many Subsea businesses slowing down or entirely halting
their physical business operations. Due to the nature of the sector, flexible working is not always
practical. Travel restrictions and office closures have significantly affected companies’ day-to-day
activities.

While the long-term potential impact of this crisis is hard to gauge, in the shorter term, businesses
should be looking closely now at the full range of financial support which is available to them,
including existing – and often underused – financing options such as R&D Tax Credits. This support
can go some way towards safeguarding the cost efficiencies and cash flows of businesses in this
sector.

As the UK’s largest innovation funding consultancy, Leyton is strongly urging companies able to
capitalise on all tax and grant incentives available to them to do so and to ensure they maximise the
full potential of these. "Now is the time to explore every avenue to aid cash flow in order to support
staff and ensure that a business can survive the economic difficulties they face in these uniquely
challenging times” comments William Garvey, Managing Director, Leyton UK

What financial support options are available?

R&D Tax Credits

The R&D Tax Credits scheme can be used by any organisation which is liable for corporation tax in
the UK and meets the necessary R&D criteria. The work which qualifies for R&D tax relief must be
part of a specific project aiming to make an advance in its field. This may research or develop a new
process, product or service, or indeed improve an existing one. Businesses should note, however,
that the claims process and the identification of qualifying activity in particular, can be relatively
complex. As a result, many business often fail to claim to their full potential which is why using a
specialist innovation funding consultancy for this process is generally advised.

Patent Box

The Patent Box regime allows qualifying companies to apply a reduced rate of corporation tax on all
profits relating to qualifying patents. Patent Box will particularly benefit your company if you;
receive patent royalties, sell patented products or use patented processes as part of the business.

Energy Tax Services

Energy Tax compensation schemes are available for many of the most electricity-intensive
industries. To qualify, your business must manufacture a product in the UK within an eligible sector,
and pass an electricity intensity test.

Land Remediation Relief

The Land Remediation Relief Scheme was introduced in order to help increase the confidence of
investors and developers making use of contaminated land. The scheme allows businesses to claim
up to 150% of the costs associated with ‘cleaning-up’ such land or dealing with harmful substances
such as Asbestos.

Please contact Leyton via joconnor@leyton.com or 0141 375 9764 to find out more about any of the
above options and how your business’ cost efficiencies and cash flow could be improved as a result