Are R&D claim companies the new PPI / personal injury no win, no fee type outfits?
I have had to fend off a couple this month chasing clients offering untold riches and tax refunds in the thousands all for just one third contingency fee.
I am quite happy to complete an R&D claim for a client if it has merit but neither company (IMO) has that. One sells leather phone cases on Amazon and the other installs saunas so I can't see how the R&D conditions could be met.
In both cases they met with the client and 100% guaranteed they could claim. They suggested increasing Directors salaries so they could claim a bigger chunk.....
I advised the last one that the client would only proceed if they obtained Advanced Assurance to which the company then ran for the hills with a whole load of excuses.
The company itself having only been formed for a year, the sole Director having multiple dissolved Directorships from diverse businesses such as jewellery selling and debt chasing, but in his words:
"In 7 years and over 1000 claims we have never submitted a single one through this process, but have experience in 1 case only where the amounts involved were in excess of £10m being recovered from an exploration company with multiple offshore arms – hugely technical and complicated and the process took 6 months, involved multiple site visits from HMRC and a degree of investigation that was nigh on crippling for the business.
In this single case it was the right approach and the amounts were serious and the risks/benefit was worthwhile. I would strongly advise you not to go down this route however. Your claim is straightforward and would not warrant the considerable disruption it would bring. Rest assured that our process will recover all of your R&D expenditure in a quick and painless way.
If you wish to go down the advanced approval route, it is simply not worth our while to proceed as the costs and time involved would not make commercial sense for us and also for you."
Funny that advance assurance is only available to businesses with less that £2M t/o and 50 employees so how he obtained that for a £10M claim I'm not sure.
So have I got my wires crossed? I am just a GP after all and don't profess to be a specialist in these things.