R&D Tax Credits

The reason for this Blog is that I was very surprised that a local firm that is in involved marine design and development, which I was providing mentoring support to, had to use a specialist consultant to recover their entitlement for R&D tax credits. The firm are using a well established mid-sized regional firm of Chartered Accountants for their accounts production and tax returns. But they had never suggested that the allowance was claimable, even though the R&D tax credit is recoverable by completion of the firm’s annual tax return (CT600).

The consultants that provide this service are generally NOT Accountants or Tax Advisers. They take a percentage of the claim. But the main issue for me is why did their Accountants not make the claim? And how many other Accountancy firms are not providing this service to their clients?

We have a client that is involved in software development, and as part of our compliance reviews we claimed R&D tax credit on their CT600, and the client received just under £30,000 within weeks of the CT600 being submitted. The Government are keen to promote and to make the tax credit payments. HMRC have an advisory team to help businesses make the claims. The take up of the R&D tax credit has been very low, yet it covers all types of development and design expenditure. Even expenditure on process improvements can be eligible for the relief.

The intention of this Blog is not to provide details of the relief, although we are able to help companies make the claim. But in my total surprise that a fully regulated and therefore highly skilled firm of Chartered Accountants misses an opportunity top help their client and allow an unregulated Management Consultant to make the claim.

This is the view of the Helpful Bean Counter.

 

 

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