Make use of tax incentives for startups
We all know startups are strapped for cash. In fact, our Managing Partner, Remco, is a virtual CFO to a bunch of startups and often calls himself a “cash hustler”. So if you’re in product development or fundraising mode, here are some tax incentives for startups (straight from the hustler’s mouth).
You might already know about the R&D tax incentive – it is one of the largest sources of early stage funding for Australian startups – but just in case, it provides refunds of up to 43.5% of the costs of R&D work. Yes, refunds of up to 43.5 per cent! Cash.
There are a few requirements, which we list here. We’ve helped many startups breathe and grow with this cash by submitting an R&D claim to AusIndustry and preparing the R&D schedule for their tax return.
While you’ve got until April 2019 to claim for the 2017/18 tax year, this is cash now so why wait? We’re already working with our startups so we can lodge as soon as possible after 30 June.
Realistically, the earliest you expect cash refunds is around September. So we’re also helping some clients access this funding in advance, thanks to the R&D lenders we work with. They lend you the money and you pay it back once your R&D claim comes through. There are some requirements of course, like providing projected cash flows and other modelling. All of which we can handle for you.