5 excellent reasons to work with an R&D tax relief consultancy
For both accountants and businesses alike, preparing an R&D Tax Credits claim can bring about optimism and trepidation in equal measures. But with many thousands of pounds potentially at stake, getting an application exactly right is crucial.
R&D tax relief consultancies like Myriad Associates can take the hassle and worry out of claiming R&D Tax Credits. With many years of working solely in this niche tax area behind us, we can help you to help your clients via guidance through the entire claims process. Not only does this free you up as their company accountant to get on with all the other necessary tax-related tasks, but it also enables your firm to provide a more complete accountancy service.
We know what you’re thinking though; I’m a highly trained accountant with loads of experience - why would I need an R&D tax consultancy? There are quite a few answers to this in fact, and here we look at just five of them.
1. Identifying projects
Competent R&D tax specialists all have one thing in common: the ability to spot a claim, even when it’s far from obvious. During our years in business, we’ve found that many companies accidentally under-claim simply by missing out projects, or part of projects, they didn’t realise were eligible. No matter what size your clients’ business is in, if it’s UK based and engaged in any scientific or technological research activities they they’ll likely qualify for the relief.
Additionally, once the full scope of relevant projects has been realised, R&D tax specialists can then take the lead in preparing a high quality narrative (read: justification) document as required. Such specialists have a wealth of knowledge around these tasks, and an in-depth understanding of HMRC guidelines and legality which is particularly valuable.
2. Recognising eligible costs
A huge range of very specific costs that occur as part of a project can make up an R&D tax relief claim. These include things like staff wages/subcontractor costs, certain overheads, materials and software licenses plus employer NICs and pension contributions. Without a firm grasp on every single one of these costs and the extent to which they qualify, it’s all too easy to make a mistake. Remember, R&D Tax Credits are not based on whether a project was actually successful or not, but on the specific scientific and/or technological innovation that went into it.
3. Working with HMRC on your client’s behalf
We make a large number of checks on each application before they reach HMRC for scrutiny. However, occasionally HMRC will get in contact after submission to ask further questions about the claim, perhaps about the R&D project itself or about your client’s calculations. Sometimes it also carries out spot checks at random, at short notice and for no discernible reason.
As with any tax affairs, HMRC are still within their rights to begin an enquiry, even once the benefit has been received in full. If HMRC is then dissatisfied with any aspect of the claim, it may request the money back in addition to fines and/or legal action.
With this in mind, if your client’s R&D Tax Credits claim is subject to an HMRC enquiry for any reason, you’ll need a team of R&D experts in your corner. Myriad Associates will work to advise both you and your client on how best proceed, and take you through the process so that a mutually acceptable outcome can be reached.
We are incredibly effective at this, and have seen all eventualities many times before. Should an application attract further HMRC investigation, we will assist by:
- Contacting HMRC on your client’s behalf to let them know we’ve taken on the case
- Reviewing the claim with you and your client, as well as going through all HMRC correspondence and documentation with a fine tooth comb
- Taking apart the claim where necessary and rebuilding it so it stands up better to scrutiny
- Working on a strategy to defend the full amount, or engaging in negotiations if a mistake has occurred
- Answering any questions you or your client may have along the way, so reducing stress and worry
4. Saving you time
Don’t underestimate the amount of time and effort that you’ll need to put in getting an R&D Tax Credits claim together if attempting to ‘DIY’ it. Your client will need to supply not just all the right figures, but accurately apportion them to relevant R&D activities. On top of that, the separate narrative document needs to be compiled that not only describes the R&D work that has been undertaken, but also justifies why it should attract the relief. Many staff members that work for your client will need input into this, which again can be time consuming and tricky to co-ordinate.
As a busy accountant with plenty already on your plate, finding time to work through all this - in the face of regularly changing government guidelines - can be incredibly hard. By working alongside an R&D tax specialist, you free up time to work on the other day to day tasks your clients need doing. You also don’t need to spend time trying to get your head round the intricacies of R&D tax relief legislation - a minefield in itself!
5. Benefitting from 100% success rate
A mentioned, claims that are poorly structured or prepared incorrectly are highly likely to be further examined by HMRC. However, by working alongside an R&D tax specialist, you and your client will drastically reduce the chances of any problems, making it well worth the cost.
At Myriad Associates, our 100% success rate is down to our detailed expertise and diligence in preparing robust, maximised claims. Not only does this offer peace of mind, it means your clients don’t run the risk of expensive fines should things go wrong.
Get in touch with the R&D tax specialists at Myriad Associates
When it comes to R&D Tax Credits, technical knowledge goes a very long way towards success. With a number of bases across the UK and Ireland, Myriad Associates can provide the advice and professional services your clients need to make an R&D tax claim successfully. Contact us today on 0207 118 6045 for more details or use our contact form so we can call you back.
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