If your business is planning to employ the services of a third party to manage its R&D Tax Credits claims, it can be difficult to know where to start. As an unregulated industry, there are now hundreds of companies claiming to have expertise in this field and a quick Google search will bring up a raft of potential suppliers.
Similarly, if you run an accountancy firm and want to find a trusted partner to handle your clients’ R&D Tax Credits claims you will face the same dilemma.
R&D Tax Credits are a vital source of cash flow and innovation funding for many businesses and it is important to choose the right partner who is not only the best fit for you to work with, but who you can trust to work ethically within the boundaries of the scheme.
Understanding & Compliance
There have been many reports in recent years of businesses submitting false claims or over-claiming, something which HMRC are actively clamping down on. After several years in the pipeline, the amount of payable R&D Tax Credits that SMEs can receive in any one year was capped from 1st April 2021. The cap is set at £20,000 plus 300% of a company’s total PAYE and National Insurance Contributions liability for the period. This measure was specifically introduced to help prevent fraudulent claims.
You need to ensure that any supplier you work with has thorough knowledge of the rules and regulations of the scheme and how to accurately apply them. This not only relates to facts and figures but also to determining what work qualifies under the scheme and can be attributed to a claim. The latter is where many non-specialists struggle and why so many businesses across the UK are still not claiming their full entitlement to R&D Tax Credits.
Getting the most of out the R&D Tax Credits scheme relies on more than tax and accountancy skills. Even the most experienced accountancy professionals often do not have the sector specific technical knowledge to be able to accurately identify all the work that qualifies as R&D under the scheme. This is why many accountancy firms now work with specialist partners who handle their clients’ R&D Tax Credits claims for them.
Companies such as R&D Funding Group employ R&D Tax specialists who also have a background in a range of industry sectors as well as professional qualifications. When you are considering potential partners it is important to check their broader background and experience in addition to their expertise in R&D Tax Credits.
Focus on R&D Tax Credits
R&D Tax Credits is a niche area of tax and accountancy and if you want to ensure your claims are maximised then it usually pays to employ the services of a specialist. If you outsource this work to a general consultant or accountant then you cannot always guarantee the same level of benefit from the scheme. Similarly, many less experienced advisors often try to attract new clients by slashing fees and under-cutting competitors but this is not necessarily more cost effective for the claimant as the level of return they provide is frequently much lower.
R&D can take place within any department of a business and every business is unique. The work undertaken that is attributable to a claim will vary greatly and a specialist with years of experience in this field is best placed to accurately identify every element of work and all the costs that qualify.
R&D Tax Credits Guarantee
R&D Funding Group will prepare your R&D Tax Credits claims for the full value your business is entitled to whilst ensuring all claims are ethical and in keeping with HMRC rules and regulations. We want you to get the most out of the R&D Tax Credits scheme but we won’t file frivolous claims or try to over-claim for work which doesn’t qualify.
R&D Funding Group’s core business is R&D Tax Credits, it is what we do day in and day out and all of our people have a minimum 10 years’ experience working in this field. We are a trusted R&D Tax Credits partner to innovative businesses and accountants across the UK. Contact us today for a free consultation and see how we can work together.