**Please note, these loans are no longer available as of June 2023**
Creative Growth Finance is aware that delays in the payment of R&D tax credits are causing challenges for our clients and the wider industry. This predominantly relates to cash and the timing of payments by HMRC. We are furthering our support by launching a bespoke Creative Tax Relief Loan – a bridging loan product to help you manage your short term cashflow needs. This can be secured against future R&D tax credits and future Video Games tax credit payments. Jump to Eligibility Criteria.
What is a Creative Tax Relief Loan?
A Creative Tax Relief Loan is a type of loan that uses your future R&D and Games tax credit payments (from HMRC) as security. You first need to qualify for an R&D or Games tax credit and your application will need to be approved by a tax specialist.
The main benefit of a Creative Tax Relief Loan is that you can access funds within 17 days of your first conversation with the Creative UK Investment team. This is helpful because, by contrast, you could be waiting many months before you receive your tax credit from HMRC.
Eligibility Criteria
To be eligible, you should be able to answer ‘yes’ to the below questions:
- Was your R&D or video games tax relief report and CT600 tax return prepared by a tax return specialist?
- Has that specialist over 2 years of trading history?
- Has the payment of your anticipated tax credit been assigned to the tax adviser?
- Has your tax return been filed or is it due to be filed in the coming weeks?
- Are you a UK registered company operating in the Creative Industries?
- Do you have at least one year of accounts filed at Companies House?
If you have answered ‘yes’ to all the questions above, you can submit your application here.
Who can apply for a loan?
We look at an application from two viewpoints: the R&D or Games tax credit itself and the company’s overall health. We first need to ascertain that a formal R&D or Games tax credit has been prepared with the guidance of a specialist tax adviser and we need assurances that the benefit of the tax credit can be assigned to us once paid. Second, we need to ascertain that your business is in sound financial health. For this we will need to see your latest management accounts including balance sheet, profit and loss and list of aged debtors and creditors).
How long does the application process take?
We aim to have a decision within 1 week of receiving your full application. It can take a further 10 working days to contract and release payment.
What are the costs associated with taking the loan?
There are two costs associated with the loan:
- A 2.5% management fee for processing the loan.
- A 1% per month interest rate applied to the loan with a minimum application of 3 months loan regardless of when the tax credit is paid.
For example:
A £100,000 loan secured against a tax credit that is paid within 3 months will incur the following costs:
- £2,500 management fee
- £3,000 interest payment
- £5,500 of costs in total.
How much can I borrow?
You can borrow between £50,000 and £500,000 and a maximum of 75% of your tax credit. Lending requirements above £500,000 are discretionary and may take a little longer to process.
How do I apply?
To express your interest, please email invest@wearecreative.uk.
To apply, please complete the following application.
