The firm was successful in claiming £247,000 of R&D tax credits from HMRC over the life of the project.
Crowe worked with the firm to identify aspects that were in scope for R&D tax benefits and assisted with the corresponding claim.
There was no ‘off the shelf’ solution readily available.
The firm developed software to create electronic workflows, replacing the previously largely paper-based system.
The project was costly with a significant investment of hours.
The project was subsidised by R&D tax benefits via a subsidiary company and hence within the R&D tax relief regime.
Solution
Issue
Outcome
Professional practice receives £247,000 of R&D tax credits from HMRC.
The firm sought a more efficient way of working using technology.
Case study
How we have helped our clients
Crowe saved the client a minimum of $6,000 in year one alone and enabled the client to legally hire their own employees in the UK.
We advised to register the US company as a non resident employer in the UK and operate monthly payroll for the two employees for an annual total of $3,000. In addition, we were able to establish and operate the mandatory local pension plan and obtain small group health insurance cover (not mandatory) for an additional $3,000.
Having spoken to a number of employer of record companies and the annual fees ranged from $12,000 to 15% of total compensation ($45,000 per year). They were uncomfortable with the idea that these two key hires were going to be employed by a third-party but would be carrying US Company business cards, holding themselves out as employees of the US Company and could potentially create both employment and tax liabilities for the US Company.
Solution
Issue
Outcome
A holistic approach to cost reduction, identifying and eliminating inefficiencies across various back-office functions.
Our client wanted to hire two sales people in the UK but they were not ready to commit to establish a permanent local presence. They wanted to treat these hires as employees, providing stock options and local benefits.
Case study
How we have helped our clients
The Bank was able to provide an import loan against a specific purchase order to help with working capital. In essence this is a short-term loan to allow upfront costs to be paid for a particular contract. Once the client has invoiced and has been paid, the loan is repaid and can be used again for another contract. The Government provided an 80% guarantee so the Banks risk was minimal.
We were able to quickly establish who the client’s Bank Relationship Manager was through our contacts and arranged for a meeting. With the client’s consent, we discussed working capital options and, whilst initially unwilling to help, we asked the Bank to consider the General Export Finance Scheme. This is a working capital scheme where the Government can provide a guarantee to help to reduce the Bank’s risk.
A wholesale business needed working capital to help with growth. The business was relatively small, had no assets and did not even know who its bank manager was. The business mainly sold to the UK market with around 10% exported to Europe. The company was paid relatively quickly but was struggling to fund the upfront costs of production where it had won several large orders but did not have the cash to fulfil.
Solution
Issue
Outcome
Our close working relationships are at the heart of our service.
Assisted a business with an innovative working capital solution.
Case study
How we have helped our clients
A working capital facility was provided which allowed the business to begin work on its new contract and take on additional work knowing that its working capital needs would be met.
The additional property loan was also agreed which gave the business additional upfront working capital. The business is now trading profitably and benefitting from continued growth.
We gained a closer understanding of the business and its working capital cycle as well as liaising with the incumbent Bank to understand why support was not forthcoming. We then introduced a local, niche working capital provider who worked closely with the client to understand its needs.
Alongside this, we introduced an alternative lender who was happy to provide finance against the property that the business owned on a forecast led assessment (i.e. appreciating the business could afford loan repayments from future income.)
A perfect storm of Brexit, increasing energy costs and Covid saw this manufacturing business make losses for several years. Its High Street bank was reducing its overdraft facility monthly and following the win of a major new contract, the business was struggling to fund working capital.
Solution
Issue
Outcome
Our close working relationships are at the heart of our service.
Assisted a loss-making business to secure working capital to fund a major new contract which would see exponential growth and profitability.
Case study