Ten important considerations when choosing a trusted R&D tax adviser

Making an informed decision about your R&D tax adviser involves assessing factors such as reputation, service quality, technical expertise and how fees are charged. We have compiled a list of the top 10 important things you should consider before choosing an R&D tax adviser.

What is R&D Tax Relief?

R&D tax relief is a valuable incentive made available by the government to encourage UK companies to invest in innovation. It is available to most limited companies who spend money on qualifying research and development and is claimed retrospectively through the corporation tax return.

R&D tax relief has been available for many years through two schemes known as RDEC (predominantly for large companies) and the SME scheme (for small and medium sized companies). The rules have been modified over time, and while it has always been important to submit accurate claims, HMRC has become more stringent in how it enforces compliance.

This leaves a complex landscape, where it is important to claim under the correct scheme, understand the rules and ensure accuracy. Attempting to submit a claim alone or choosing the wrong adviser carries significant risk.

On the other hand, a trusted R&D tax adviser can identify viable claims, optimise them for maximum benefit and adhere to all procedures to minimise compliance risks.

When you choose your R&D tax credit adviser, you should consider the following ten factors carefully:

1.    Technical expertise

R&D tax relief is first and foremost part of the UK tax system, so it is essential that the adviser you choose has extensive knowledge of the tax rules in both theory and application. Look out for recognised qualifications in the team like chartered tax adviser status (CTA), chartered accountant (ACA), and Association of Taxation Technicians ATT.

2.    Industry understanding

A good R&D tax adviser will have the in-house resources to marry up their knowledge of taxation with industry insight in whatever sector you operate in, from software development to furniture manufacturing. This will allow them to identify precisely where the R&D is taking place for tax purposes and which costs can be included in your claim.

3.    Credentials

While tax qualifications are crucial, evaluate whether their team holds additional credentials that demonstrate their competence and expertise. Look for industry-related PhDs, strong connections to HMRC, or sector specialists.

4.    Reputation

Conduct some basic research using review sites like Google or Trustpilot. Alternatively, you can read case studies and testimonials on the advisers’ own website that delve into customer success stories.

5.    Responsiveness

An essential aspect of customer service is an adviser’s prompt responsiveness. While a tax adviser may possess deep knowledge of tax law, their unavailability to address inquiries or lengthy delays in providing information can significantly diminish the customer experience.

6.    Communication skills

The nuances of the R&D tax relief schemes can be quite complex. Choosing an adviser who can explain these to you in simpler terms is important for you to feel fully informed throughout the claim process.

This will not only give you peace of mind, but also help ensure that all relevant information flows freely between you and your adviser, to ensure that everything is included in your claim accurately.

7.    A tailored approach

A generic framework is useful to follow, but if your R&D tax adviser is unable to adapt to your business, they may miss opportunities to fully represent your claim and record all legible costs. A trusted tax adviser will delve into all details and have a unique approach to best suit each business.

8.    Fees

Different R&D advisers will have different fee structures, so it is important for you to understand how you will be charged before appointing an adviser. For example, we base our fee on a percentage of the successful claim value. This means that you only pay if your claim is successful.

9.    Collaboration

Partnering with an R&D tax adviser who fosters a collaborative environment with your broader team and key stakeholders can significantly enhance the accuracy and efficiency of your R&D tax claims. Discover how our collaborative approach has helped our clients.

10. Proactive

As the R&D landscape continuously evolves, a proficient R&D tax adviser must stay ahead of the latest legislative developments to provide clients with the most informed guidance. Our commitment to keeping our clients ahead of the curve by proactively monitoring regulatory changes has earned us the trust of over 90% of our clients, who would highly recommend our services.­­

R&D tax adviser case studies

Since 2017, we have helped our clients claim more than £106+ million in R&D tax relief. Here are just a few of their stories:

Debite – Financial Services sector

This niche fintech firm spent considerable money on research and development whilst creating a new credit card funding platform for start-ups. Find out how we helped and what they thought of our service. Read the full story.

Literacy Tree – Education sector

Recognising the intricacies involved in claiming R&D tax credits, the Literacy Tree sought guidance from Kene. Their R&D benefit received effectively reimbursed the costs incurred in developing a new mobile app, rebranding their company, and expanding their operations. Read the full story.

Ecoegg – Manufacturing sector

An innovative company developing novel laundry products since 2008, Ecoegg didn’t realise they were eligible for a financial benefit via R&D tax credits until they started working with us. We were able to educate them on R&D tax relief and generate a significant boost for them. Read the full story.

R&D Tax Adviser Frequently Asked Questions

Can I change R&D tax advisers if I am not happy with my current one?

We are able to improve 80% of the existing claims we are asked to review. If you are not satisfied with your current provider, check your contractual situation. If you think you may be tied in, talk to us and we can help you understand what’s possible. If you are not contracted to use them for a set time period, there should be nothing to stop you switching R&D tax advisers.

Can I claim retrospectively for R&D tax relief?

If you are looking for an R&D tax adviser for the first time but feel you may have been carrying out qualifying R&D for several years, the good news is you can make a retrospective claim. However, you can only claim for the previous two accounting periods. We can start helping you today, so get in get in touch with our team or book a free consultation.

Can I just use my accountant for my R&D tax credit claim?

Some accountants may offer an R&D service, but it is unlikely to be their speciality. We foster excellent relationships with accountants supporting them and their clients.

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