Did you know that many businesses who submit a research and development (R&D) tax credit claim, receive more than £50,000 a year in the form of a cash repayment and/or corporation tax reduction? That represents an incredible boost for any company – and one that many of your clients may be missing out on.
We know that as an accountant, you are focused on offering the most up to date and relevant advice to your clients. However, when it comes to the government's R&D tax credit incentive, it is not always easy to identify which of your clients may be eligible.
How do I know which clients to talk to?
It is important to keep an open mind when it comes to R&D tax credits as R&D activity is often found in the most unlikely of places! For instance, one of our clients is a wine broker who created their own software programme to help their business run more smoothly, and another is an ex-midwife involved in education and training who created a midwifery stool. They have both subsequently benefitted from a successful R&D tax credit claim and received a vital financial boost to their business.
The R&D claim guidelines set out by the government are deliberately broad and state that 'any business taking a risk by innovating, improving or developing a process, product or service is engaged in R&D activity'. Although intended to be helpful, this broad criteria can make it even more difficult to identify the clients you should be talking to. Here are a few pointers that might help you:
- It's not rocket science
Despite many preconceptions, eligible R&D activity is not confined to the laboratory or only undertaken by people in white coats. It can be found in businesses of all sizes, across all industries and sectors – and even in those companies that are yet to make a profit or have made a loss.
- View the workforce
The type of people your client employs can help you identify if any R&D work is likely to be taking place. Where highly skilled or qualified workers such as engineers or architects are on the payroll, there is an increased chance that the company will be involved in some innovative work.
- Look at grants and funding
If your client has already received grants or funding towards their work, this is an indicator that they might be eligible for R&D tax credits.
- Keep up with the latest news
Talk to your clients regularly to get a clear picture of the work they are engaged in and if they are about to embark on any new projects, either for themselves or on behalf of their own clients. As you dig deeper, you might just uncover some innovative work you were not previously aware of that could result in a successful R&D tax credit claim. Sometimes, while the main focus of the business may not beinnovative, other work on the periphery is.
How can I sell this service to my clients?
You really have nothing to lose by suggesting R&D tax credits to your clients – and they have everything to gain. It is a subject that is getting more attention, so if you do not talk to your clients about R&D tax credits, there is every chance that someone else will.
Easy and fuss-free
We understand you will not want to increase your workload or deal with something that is outside your area of expertise. That is the benefit of working with PfP.
All you have to do is identify any clients you think may be eligible to make an R&D tax credit claim. Then you can leave the rest to us. We are a firm of chartered tax advisers specialising wholly in R&D tax credits – and we’ve won awards for our work. Our 50-strong team is highly knowledgeable and quick to spot any eligible areas of R&D activity. We operate on a 'no win, no fee' basis and are 100% focussed on achieving and maximising claims – often even managing to increase claims already submitted for previous years.
Perhaps the easiest way to begin is to look through your client list and identify five clients who you think might be involved in R&D work. We can then have a short conversation with these clients to discover if their work is eligible for an R&D tax credit claim. If they are eligible, the claim can be put together, either with your help or on your behalf. If not, at least your clients will know what to look for in the future.
When one of your clients has a successful R&D tax credit claim, you will benefit too. As well as enhancing your reputation and helping you remain competitive, we recognise the value of your referral by sharing a portion of our fee.
We are here to help
It is really important that your clients are aware of the valuable benefits to be gained from the R&D tax credit incentive and know how to access the best advice to ensure they are not missing out.
So if you have any further questions about making an R&D tax credit claim or would like to talk to PFP R&D to find out more, call us today on 0330 010 4010. We will be happy to help you.