Why larger R&D tax claims need the professionals

Why “might” isn’t good enough

Of course, any company (provided they have qualifying expenditure) could do an R&D Tax Credits application themselves and wing it first time. Just as not everyone will be subjected to a tax audit, some claimants might get lucky and receive their monies even if their application isn’t great.

Emphasis on “might”.

Needless to say, this is exactly the route we advise you not to take - especially if your claim is on the larger side.

As the economic downturn bites, R&D Tax Credits are fast becoming an essential, reliable source of cash flow for UK companies.

The scheme is generous and with such a large amount of money at stake why base a claim on “might”?

R&D tax relief claims that haven’t at least been vetted by an experienced specialist could easily attract an HMRC enquiry into the company’s wider tax affairs. This is the kind of misery most people can only imagine, sucking up a huge amount of time and resource (not to mention stress).

Plus of course, HMRC are within their rights to examine tax payments up to seven years after the year in which the R&D work took place. Not something you’ll want hanging over you.

At Myriad Associates we check all R&D tax relief applications at every stage before they’re submitted. Of course no claim is guaranteed and that's why, unlike some other providers, we will defend your claim against any HMRC questions and enquiries - so you don’t have to.

So why should you work with a professional for your larger R&D claim?

1. Risk

It stands to reason that bigger claims are more likely to attract the attention of HMRC inspectors. Of course, smaller claims also get thoroughly scrutinised (no one can hide from HMRC!) but poorly structured or inaccurate larger claims, particularly those over say £100k, are like a red rag to a bull.

Using an R&D specialist consultancy will reduce the risks of claiming R&D tax relief long before an application is in the hands of HMRC officers. We also work to maximise the claim, whilst presenting it in the manner that meets HMRC criteria. Having spent almost two decades working in this very niche area of corporate tax, we know where the boundaries lie and the pitfalls are. This means we can help you receive every penny you’re entitled to, whilst reducing the risk of an HMRC enquiry.

In some cases, we've helped clients triple the value of their R&D claims compared to those that've filed their claims in-house or with accountants prior to enquiring with us.

2. Optimisation

Specialists know the R&D Tax Credits scheme inside out, and have detailed insider knowledge about how your claim can be maximised. This means making sure not a single eligible cost is missed off. We will also help you evidence your expenditure, as well as advise on appropriate record keeping for any future applications too.

Additionally our expert team can point out where you’ve remembered to include a cost, but it has not been given a high enough percentage. We do this by getting to know your company, your team and your project from the outset. This then puts us in the best position to help give a percentage of involvement for each person who worked on the R&D project. Whilst this will certainly also be required for SME claims, remember that for large claims the percentages in question will generate much larger amounts of relief. Indeed, when an R&D project is particularly substantial, involving large numbers of people, even the smallest of adjustments can add up to serious cash. Over the years we’ve even seen some of our clients increase their claim by 60% or more.

So in fact, when you consider the fees associated with using specialists in more detail, they actually make sense.

3. Delegation

This isn’t something that immediately jumps to mind but it’s important nevertheless.

For small companies and start-ups, management are typically time rich and cash poor. But once the company starts to grow, their time and attention is pulled in a multitude of directions, making R&D Tax Credits just something else to fit in. Money is then not such an issue, but finding the time for what is often a somewhat laborious claims process certainly can be.

The team at Myriad Associates will handle all aspects of your R&D Tax Credits claim for you from start to finish. It means you can delegate all the complex, time consuming stuff to us, thereby directing your attention to everything else you need to get done in your day.

Why working with Myriad Associates makes R&D tax relief easy

Maximising and optimising an R&D Tax Credits claim is not straightforward. It’s not easy to spot which types of expenses are eligible, making over-claiming (and under-claiming) extremely easy.

Then as if that wasn’t difficult enough, there’s also the technical report to complete. This is where you describe your project, and the technical/scientific advancements made, to show HMRC why you believe your claim is valid. The criteria is strict and there’s a lot to include; a minefield indeed.

The Myriad Associates team consists of specialists from a range of R&D funding backgrounds that take the hassle and uncertainty out of claiming R&D Tax Credits. Whether your claim is large or small, we’re here to help.

Get in touch

If you’re looking to find out more about innovation funding and R&D tax relief claims, contact us today or give us a call on 0207 118 6045.