PROFESSIONAL HELP FOR R&D CLAIM: WHY IS IT NECESSARY?
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If you are a company looking to claim your R&D tax credits, it can be a risky feat to initiate the process without proper guidance and facilitation. Especially if the R&D claim for the tax return is a large one.
The R&D tax credit scheme is a relief package from the government of the UK to help businesses and companies investing in research and development and thus comes with specific prerequisites. And only professional help can come to your aid to assist you in making the appropriate R&D tax claim efficiently as well.
Here are several reasons why professional help for R and D tax relief is necessary:
1. High Risk
Since the R&D tax credit is a government project, it is supervised by the HMRC. Hence, the claim for the R and D tax relief is monitored and involves a high risk of being rejected by the HMRC if the guidelines are not followed correctly. If you decide to submit your claim without proper consultation, and it has been built poorly, the chances of the HMRC rejecting it largely increase.
The risk, therefore, is high and you do not want to miss out on the R&D tax relief in its entirety.
2. Maximisation
Having an R&D claim specialist for a consultancy before making a claim is beneficial as it augments, or maximises, the claim. R&D tax credits specialists will ensure that your company receives eligible costs in their entirety and this is coupled with a thorough and comprehensive recording of your expenditures.
When arranging an R&D claim for the R&D tax credit, it is common for some costs to be marked with a low percentage of eligible relief. An R&D tax credit expert will advise you of the rightful percentage for the cost to ensure you obtain the maximum relief from the HMRC.
Quite significantly, expert consultancy aids in making records of the costs in the future and intricately presents the foundation and structure for any R&D tax credit claims in the future.
Moreover, it is important to understand that the larger the size of the investment in the R&D project, the higher its R&D claim value. Taking note of this, R&D tax credit experts will help in increasing the percentages in the R&D claim so that the amounts of relief are larger as well. The clients can avail increased percentage of R&D tax relief.
3. Delegation
Whether you are a small business or a large business pursuing an R&D project and then claiming for R&D tax relief, managing your R&D claim can become a tedious task. This is common as once businesses start to operate and expand, there becomes less concern about the management of records, costs, and percentage calculation for the R&D tax relief.
This conundrum is easily avoidable by entrusting this responsibility to able and efficient R&D tax credit specialists, who are diligent in record keeping, bearing in mind the interests of the company as both the contributors of R&D projects and claimants of R&D tax relief.
4. Competent Professional
For your R&D tax credit matters, your company must have a competent professional for consultancy into its schematics. But more significant than that is to be able to understand the characteristic of being ‘competent’. Let us have a look into what it means to be a competent professional in R&D tax credit consultancy, and how does that ensure your company obtains maximum returns.
A competent professional should be able to fall in the following key criteria:
- The competent professional must have ample background and current knowledge about the field of R&D
- The competent professional should be sound about the scientific and technological principles around the R&D project
- The competent professional is to have amassed experience and recognition for quality consultancy and work.
Having an R&D tax credit expert who carries such characteristics is beneficial for the company seeking R&D tax credit. Such a competent professional aids in the advancement of the R&D project and tax returns. The professional consultant validates the terms of your R&D project and proceeds to inform you where the tax is returnable, ensuring that your company is accredited to the maximum capacity. Having ample knowledge in the field of R&D is also helpful in pointing out key parts where you might have overlooked to claim for the R&D tax credit.