Claiming R&D tax relief requires a set of specific scientific and technological skills rather than number crunching activities to maximise claims. Most companies have firms that strictly focus on tax and audit services. And often times, companies believe that allowing these firms to manage their claim seems like an obvious and natural decision. The problem is that an R&D tax credit claim is more than a numbers exercise.
The qualifications to claim are based on science, technology and interpreting the tax laws to ensure nothing is left on the table. More specifically, it requires technical knowledge of aspects of projects being claimed that includes a streamlined claim process, qualifying eligible activities and knowing the requirements being sought by HMRC. Providers that do not possess this expertise should not carry out your R&D claims
Below are some errors we have seen claimants make when being advised by companies and/or companies advising that do not have a technical understanding as to what a company develops as a product, service, technique or formula:
Making a claim for ineligible activities: During our 30 years of experience, we have regularly seen tax credit claims being submitted with non-qualifying projects. This is usually because there has been a misunderstanding around what actually is eligible. If your claim includes activities that are not eligible, this will bring down the value of your claim or even open you up for an HMRC compliance check, resulting in fines or further action.
Not keeping up with the changes or new HMRC submission policies: Following on the above-mentioned, HMRC has increasingly tightened up the rules around this over the last few years so it is important that service providers advise companies of these changes. Keeping informed with the latest changes is crucial to making sure that you are including the right expenses in your claim.
RDP Associates provide you with a quality claim through our technical expertise and superior client service.