How to Introduce your Accountancy Clients to R&D Tax Credits

As an accountant, chances are you focus heavily on how to help your clients comply with the complex regulations surrounding the corporate tax system. You work both on the nitty-gritty of making sure all areas of finance are under control, but also play a significant role in helping companies mitigate costs incurred by non-revenue-producing activities. A good accountant is a resource and asset for a company, one who can use their experience and knowledge to enhance financial performance. And that makes you the right kind of professional to introduce your clients to other helpful experts. That includes those that can advise them on more specialist subjects, such as research and development.

Outsourcing in-demand expertise

Of course, filing a company tax return with HMRC is clearly within your remit as an account. But even the best accountants may find the task of navigating the intricacies of the R&D Tax Credits system time-consuming. That’s where involving an R&D Tax specialist can be highly beneficial. Given that your clients may be unaware of the opportunities R&D Tax Credits present, outside expertise and its practical application may prove to be invaluable during the claim submission process.  

Why bring in a specialist

In the vast majority of cases, bringing a specialist into the mix to work with clients is only cost-effective if the claim is substantial, rather than just a few hundred pounds. Nevertheless, regardless of the business sector or company turnover, a specialist in R&D Tax Credits brings additional knowledge and skills, you as an accountant can draw upon to better serve your clients. Identifying the nuts and bolts of such non-operational activites is beyond the scope of a standard financial audit by a company accountant. That is why using a specialist to prepare, deliver, and support a claim if it makes fiscal sense, will ultimately save time and money. It also minimises risk in two ways:

• The likelihood of a sub-standard or incomplete claim is significantly reduced.
• The opportunity risk of either not submitting a claim at all or missing out on submitting eligible activities is practically eliminated.

Additional benefits an R&D Tax specialist can provide

Whether you’re working with a start-up, mid-size business, or large corporation, the regulations and requirements for R&D Tax Credits are certainly not set in stone. That means the parameters can change at any moment. These changes are finalised at periodic meetings with HMRC specialists, which are attended by external R&D Tax Credit specialists. Indeed, the entire livelihood of an R&D tax specialist depends on their ability to stay up to date on changes.For you, the accountant, an R&D tax credit claim could require a disproportionate amount of time and energy. You may need to source and research the precise information required to submit a claim for your client successfully. However, If the claim is successful, it will no doubt strengthen the relationship between you and your client. That’s because it will significantly lessen the tax burden for any activity that is deemed essential to their development as a business. Many large claims will be scrutinised by HMRC claims specialists. Claims, of course, always benefit from being well-structured and professionally prepared, hence why your role as an accountant is essential. When it comes to R&D Tax Credits, however, HMRC applies an additional level of scrutiny, which is why having an R&D specialist to hand could prove to be so valuable

Adding value to claims for R&D Tax Credits

A healthy company requires growth, and that growth can be fuelled by drawing on the right expertise. Experts working together with company accountants can free up capital which otherwise remains unclaimed. The types of expenditure permitted with HMRC’s R&D Tax Credits scheme are wide-ranging. That reflects the belief that investment in innovation doesn’t just benefit individual companies but can also add impetus to the UK economy as a whole. That is why you, as an accountant, should consider working hand in hand with an R&D tax specialist. In this way, you can make sure your client can take full advantage of the opportunities available to them.

Can Kene help your clients?

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