Research & Development Advance is short term lending service against an identified advance being made to the company, in this case, a Research & Development claim. It can take up to six months between a company making an R&D claim and receiving payment from HM Revenue & Customs (HMRC). ArchOver helps companies to bridge this gap by facilitating a loan under our ‘Research & Development Advance’ service.
The R&D Advance is available only to companies that can demonstrate a history of successfully claiming R&D tax credits from HMRC, at least two years of successful claims need to have been made. Additionally, the company must have retained professional advisers to help in the preparation of the R&D tax credit claim. When making the claim, the company seeking the advance must advise HMRC to pay all the funds claimed to an ArchOver Controlled bank account. The directors of the company seeking the advance must warrant that the PAYE, CIS, VAT and CT payments are up to date (ie, that the advance company has no overdue debts to HMRC) and will be maintained up to date throughout the period of the advance. Further, the directors confirm that, in their reasonable opinion and having made reasonable enquiries, the advance company has sufficient funds to trade through the period of the advance and beyond.