If you are aware of R&D tax relief you may be thinking about how it might apply to your business, and how to go about starting the process.
What questions should you ask when choosing a specialist?
1. Experience - Do they have experience of claims relevant to your industry? A well established team will use their experience to optimise your claim values, and to ensure all of the relevant work is identified for each period.
2. Knowledge - Do their team have a strong industrial background, broad industry knowledge and understand the guidelines?
3. Service - Do they provide a fully managed service, leaving you to focus on running your business? You should establish how much of your time and input is required.
4. Support - Do they support you in the event of an HMRC enquiry?
5. Relationship - Some companies want to tie you in for years, others prefer to build a relationship with you through providing good service.
Your accountant may be able to offer advice, but unsurprisingly it’s not an area many accountants feel comfortable with. The HMRC guidelines suggest a technical report is provided to support the claim, and while your accountant will undoubtedly have an idea of the industry you’re involved in, it’s not a natural fit for them to develop a deep technical knowledge of your developmental processes, or to communicate that to HMRC inspectors in the correct way.
Some larger accountancy practices have individuals or departments who specialise in R&D tax relief, and they may be able to offer the right level of expertise to optimise your claim, but directors often choose a specialist company to work with.
This decision is usually based on an advisor’s understanding of the legislation and experience of working in your industry and their knowledge of the HMRC guidelines. A percentage of your claim value is charged as a fee for their services usually based on success only (no win no fee) and as you might expect there is a variation in charges, service, experience and knowledge.
For impartial and free initial advice, and to find out how G2 work with clients please get in touch.
WHAT ARE R&D TAX CREDITS?
R&D tax credits or ‘Research and Development (R&D) Relief for Corporation Tax’ to use the full name, is run and administered by HMRC. It is designed to encourage investment in R&D and new product development and currently provides around £1 billion in tax relief to companies each year. The scheme was set up in 2000 and is a vital Government incentive in supporting businesses and helping the UK economy to grow through innovation and development.
The scheme has improved significantly since its inception, with the rate of relief increasing consistently and restrictions being relaxed, extending the benefits to more companies.
OUR SERVICE AT A GLANCE:
- Fully managed service
- 100% success rate
- Payment only when you see the benefit
- No set-up fees or expenses charged
- No long-term tie-ins
- Team with industrial experience and expertise
Looking for more information on R&D tax relief? Check out our R&D Tax Guide.
This post was written by our Commerical Manager Alex Atkin