Mike Price - Chair and founder of MPA Group
In the past few years the research and development tax relief advisory market has become saturated. As the government raises awareness of the scheme, accountants, large financial corporations and funding specialists have increased their expertise in the area, and providers working solely on R&D relief – sometimes called ‘boutiques’ – have sprung up seemingly out of nowhere.
With stories of crackdowns by HM Revenue & Customs frequently appearing in the news, scare tactics being used to sway already stressed business owners into choosing unnecessary services and unqualified advisors flooding the market, many no longer know what to do for the best.
Milton Keynes-based professional services provider MPA thinks the key to finding the best R&D tax provider is to see past the headlines.
FRAUD
In the Autumn Budget, Chancellor of the Exchequer Rishi Sunak announced a series of reforms to the R&D tax relief scheme designed to reduce fraudulent claims.
Among these were steps to improve compliance so it might surprise you to know that advisor regulation is still not on the table – for now.
Until such rules are put in place, the best thing to do is to establish what qualifications and memberships a potential provider holds as well as asking about claim success rates.
HMRC are looking for those deliberately trying to take advantage of the system so those genuinely undertaking R&D should not be put off from claiming.
THE FUNDING LANDSCAPE
Increasingly we are seeing clients come to us having been told that they are no longer eligible for tax relief because they have sought other forms on funding.
This is not always true.
R&D tax relief can work in conjunction with other types of financing, such as grants, but each scenario and business is different.
Find an advisor with the relevant knowledge who will also take the time to understand your position now and your goals for the future.
GENUINE R&D
Be wary of advisors who promise large pay-outs, guaranteed cash, and fast turnaround times. R&D tax relief is a government-administered form of incentivisation designed to reward innovation and it simply is not available to every business or for every R&D project.
A reputable, experienced advisor will help you to ensure there is a genuine claim to be had, that all qualifying costs are included, the R&D is fully evidenced and claims are not over-inflated or inappropriate for any reason.