How Accountants Can Help Get R & D Tax Claim For Clients?

January 20, 2022 by Accounting Firms

Research and Development (R&D) relief is offered by the government to support businesses that work on innovative projects in the field of technology and science. A wide range of businesses is able to claim this relief so that they can develop or research a particular advance within their field. You can even make a claim if the project has not been a success. However, to give yourself the best chance of successfully claiming, it makes sense to work with an accountant.

Why should you work with an accountant to make a claim for R&D?

A lot of businesses try to claim by themselves, and they end up being unsuccessful. This is because there are strict requirements in place regarding what does and does not count for an R&D project. Your accountant will make sure you do not waste your time by only claiming if your project is going to be eligible. Aside from this, they will ensure that your application is filled out correctly so that you have the best possible chance of being accepted.

To give you a better understanding, the work that is applicable for a Research and Development (R&D) relief needs to be part of a certain project that will make an advance in technology or science. Social science advancements, such as progressions in a theoretical study such as pure maths or in economics, are not eligible. Furthermore, it is critical that the project is carried out is related to the trade your business is involved in, or that your aim is to start-up a business based on the R&D project and the results it yields.

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When you make a tax claim for R&D relief you need to explain four key things about the project. Firstly, you need to explain how your project looked for an advance in technology and science. Secondly, you need to show that the project was not something that could have been worked out by a professional in the industry with ease. Thirdly, you need to explain that the project had to overcome uncertainty, and finally, you need to show how you tried to overcome this uncertainty.

Even if you are confident that your project fulfills the four criteria mentioned, it is not always easy to put this into the right words to show that this is the case. However, accountants that have carried out many different R&D claims before will know exactly what to say to ensure that the four points mentioned above are satisfied in the eyes of the government.

Get the maximum amount of R&D credit available to you with an accountant

Not only will an accountant help you to make a successful claim, to begin with, but your accountant is also going to ensure that you get the maximum amount of Tax Claim that you are entitled to. There are various forms of Research and Development (R&D) relief available, and the amount that you are awarded will depend on the size of your business, as well as whether or not the project has been subcontracted to you or not.

For example, there is small and medium-size Research and Development (R&D) tax claim, which is designed for companies that are classified as a SME and have fewer than 500 members of staff. Moreover, you must have a balance sheet total that is less than 86 million euros or a turnover that is under 100 million euros. Aside from this, you may need to incorporate partnerships and linked companies when figuring out whether or not you classify as an SME. This is something that your accountant is going to be able to assist you with to make sure that you are making the right application.

For larger companies, you will need to claim Research and Development Expenditure Credit, known as RDEC. This is a new scheme that has replaced the relief that used to be accessible via the large company scheme, just to make matters more confusing, highlighting the need for professional guidance.

So there you have it: an insight into the benefits that are associated with using an account to make an R&D tax claim. The only thing you need to do now is getting in touch with a quality team of accountants who can process your claim for you and enable you to unlock all of the benefits mentioned above.