Choosing the right R&D Tax Adviser for your business

Choosing an R&D Tax Adviser can be daunting, so we thought it would be useful to share some hints and tips of things you might like to consider when making your choice.
 
When it comes to making a Research and Development (R&D) tax credit claim, choosing the right specialist adviser is crucial. With various firms offering R&D tax services, ranging from large audit practices to local accountancy firms and niche R&D tax credit boutiques, it's important to select a professional who understands your business's unique needs. Here’s what you need to know to make an informed decision.

Why choose a specialist R&D Tax Adviser?

R&D tax advice is a highly specialised field. While some general accountants and tax professionals may occasionally handle R&D claims, a dedicated R&D tax adviser brings in-depth expertise, knowledge and experience. This can make a significant difference in the accuracy and success of your claim.

It’s worth noting that anyone can call themselves an R&D tax specialist, even without professional qualifications. However, professionally qualified advisers bring essential advantages such as regulation by a recognised body, professional indemnity insurance, and ongoing training to stay current with the ever-changing tax legislation.

Key considerations when choosing an adviser

Here are some essential factors to consider when selecting an R&D Tax Adviser:

1. Specialisation and expertise

• Does the adviser focus on R&D tax credits, or are they a general practitioner?
• Do they have experience working with businesses in your industry?
• Are they professionally qualified in tax or accountancy, or do they rely on experience?

2. Understanding of your business

• The adviser should invest time in understanding your operations to identify eligible R&D activities.
• Avoid advisers who rely solely on written communication without taking the time to interact directly.

3. Reputation and recommendations

• Seek recommendations from peers or your accountant.
• Look for testimonials, references, or case studies from previous clients.

4. Transparency in the claims process

• Beware of exaggerated marketing claims, such as being “HMRC-approved.” HMRC does not endorse advisers or specific methodologies.
• Reputable firms will clearly explain where claims can or cannot be made and highlight potential risks.

5. Collaboration with your team

• If you already have an accountant or in-house tax team, ensure the adviser communicates effectively and provides all necessary documentation for your corporation tax filings.

6. Regulatory compliance

• Verify that the adviser adheres to regulatory standards, including:
  • Membership in a professional body that follows the Professional Conduct in Relation to Taxation (PCRT) guidelines.
  • Registration for anti-money laundering (AML) supervision.
• Check if they hold professional indemnity insurance, which offers added client protection.

7. Post-claim support

• Confirm whether the adviser provides aftercare, such as handling HMRC enquiries.

What to expect from a good R&D Tax Adviser

A reputable R&D Tax Adviser should:

• Provide a detailed report of your R&D claim for your review and approval before submission.
• Explain the claim in plain language and highlight any risks or judgment areas.
• Offer support to your accountant or internal team as needed.
• Ensure you agree to the claim in writing, as your company is ultimately responsible for its accuracy.
• Proactively advise of changes in R&D legislation and rules and plan in advance to mitigate the effect of changes and ensure companies can continue to claim all the R&D tax relief they are entitled to.

Making the right choice

Investing time in choosing the right adviser can save you from costly mistakes or compliance issues. Here’s how to get started:

1. Research: Visit firms' websites to ensure they offer services in your sector.
2. Shortlist and compare: Contact a few firms and meet with them to assess their suitability.
3. Ask Questions: Use the considerations above to evaluate their reputation, qualifications, processes, and alignment with your needs.

By choosing a qualified and experienced R&D tax adviser, you can navigate the complexities of R&D tax credits with confidence, ensuring that your claim is accurate, compliant, and maximised.

At JS, we already have these measures in place as part of our ‘best practice’ policy.  If you would like a free, confidential discussion regarding your R&D claims or are considering making a claim for the first time, our R&D tax specialists are available to help.

For further information, contact RandD@teamjs.co.uk.