As a business owner, you may well be looking to plan ahead as much as possible at the moment to help mitigate the challenges faced in 2020, and make 2021 a successful year for your business. To help facilitate this, we’ve pulled together a couple ‘business savvy’ tips aimed at helping you make crucial savings and free up cash flow.
Tip 1: Make a R&D Claim.
Research and development is an important part of any innovative company but it can be a costly process. With the end of the tax year fast approaching, this could be a great time to file your R&D claim to help reduce the costs associated with any investments you’ve made in this area. R&D tax credits are a government-funded scheme aimed at helping UK companies that wish to enhance their business’s efficiency. They can be claimed either as cash payments or via a reduction in the amount of corporation tax you pay.
If you are able to show that your business “seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty”, you could be eligible to make a claim. As a reminder, claims can be made up to two years prior. Simply click here to begin your claim and speak with one of our specialists.
Tip 2: Check your spending on International payments.
Whether you’re buying or selling goods abroad, it’s a good idea to check that you’re getting the best price on your foreign exchange costs. In the UK alone, businesses are overcharged by approximately £4bn per year. Adding the impact of Brexit into the mix, now would also be a good time to familiarise yourself with hedging. This will allow you to protect your business against upward (or downward) currency fluctuations by going short (or long) where applicable, as well as providing the assurance needed to forecast future performance more effectively and save money.
Our FX comparison tool enables you to lock in exchange rates and find contracts to suit your business needs.
Tip 3: Switch or open another Bank Account.
Switching or opening another bank account can be an effective way to make savings across your cost base in the very short term. If you’re planning to launch a business in 2021, you will need a business bank account in order to register as a Limited company. We work with a number of banks that are particularly well suited for early-stage businesses. And if you’re a business that’s more established, it’s still a good idea to check that you’re getting the most from your bank. Start comparing now to get the best deal on your business current account.
Tip 4: Go Green in 2021.
Why not start 2021 by making a positive change and going green? By checking, and potentially changing your energy provider, you could:
- Save money – as oil and gas prices rise, why not lock in a great rate for the next 3 years to save yourself some cash.
- Become a socially conscious business – if you’re looking to change your energy provider, why not pick a renewable energy tariff and lower your business’s carbon footprint. You can compare both mainstream and green energy providers here.
Tip 5: Apply for grants!
Grant funding is a fantastic way to secure extra funding for your business in 2021 and accelerate new product development via innovation grants. A wide range of grant competitions will be re-launching in 2021 like the sector-agnostic Innovate UK SMART Grants. More specific grants are also scheduled to be launched by the Industry Strategy Challenge Fund, which aims to improve the productivity and competitiveness of foundation industry companies and supply chains. Swoop can help write, review and submit your grant applications for these grant funds, so why not sign up to see what you may be eligible for. Simply register an account for free to check out the grants available in your region and to your business.