An R&D tax consultant, also known as an adviser, is a qualified specialist in areas relating to R&D tax reliefs. Generally, as part of the accounting and tax profession, an R&D tax consultant will have extensive knowledge of the UK tax system, not just legislation relating to R&D.
What does an R&D Tax Consultant do?
An R&D tax consultant will deploy their knowledge and experience within the R&D field to provide specialist advice and support for companies seeking R&D reliefs.
As part of this support, the consultant will take time to fully understand a business and its innovative activities, drawing out and collating qualifying costs, and constructing a claim that is both fully compliant and as valuable as possible to the claimant business.
The tasks conducted by an R&D tax consultant will also include preparation of written evidence and reports, as well as preparing financial documents and calculations in support of a claim.
From a qualified R&D tax consultant, you can expect:
- an assessment of your company’s eligibility for claiming R&D tax reliefs;
- a carefully calculated and accurate total claim value;
- a rigorous compliance check to ensure you will not owe money back to HMRC at a later date following an enquiry;
- all, or most of, the claim documents to be taken care of, including technical information, qualifying costs, and any other required documentation.
R&D tax consultants and compliance
Compliance with R&D tax relief claims has always been important, but recent statistics show that it is now a major area of focus for HMRC.
Studies by Cambridge University and Office of National Statistics show that the government’s R&D relief scheme for SMEs cost £7.7bn in 2020-21 and could rise to £11.9bn by 2026-27.
With the added economic damage of the Coronavirus pandemic in the mix, HMRC are sure to be cracking down hard on fraud and abuse of the R&D scheme.
Penalties can be charged up to 70% of the claim value if the errors are found to be deliberate and could then result in Criminal Investigation and prosecution.
It is especially important to note that the claimant business, not their accountant, R&D boutique, or consultant, is accountable for any errors. This is why it has never been more important for your R&D consultant to be fully versed in the legislation, ensuring claims are watertight before submission to HMRC.
How do I speak to an R&D Tax Consultant?
Speaking to a qualified and experienced R&D tax consultant is easy, but that does not need to be your first step. With Radius, you are welcome to request a free, 30-minute R&D tax reliefs consultation, where we will assess your case and determine your eligibility to claim.
But before that, there are handy tools and resources you can do yourself, such as checking your eligibility to claim through a free R&D eligibility checklist. You can also get an initial estimate of your potential claim value using an R&D tax relief calculator.
These tools do not guarantee a specific outcome – for that we strongly recommend speaking to an expert, but they are a useful way to understand your general position in advance of speaking to anybody.
