Our team have put together answers to the most common concerns or questions they hear when discussing R&D Tax Relief with eligible businesses. Some of the most common things we hear are:

“Shouldn’t my accountant know about this?”

“Can they ask for the money back?”

“My accountant told me to stay away from it”

“It sounds too good to be true”

The R&D Tax Relief Scheme has been around for 20+ years. It was introduced by the Government. The Government invested £7 billion into the scheme last year to provide financial support to UK businesses, which ultimately helps strengthen the economy. As companies grow, this, in turn, creates more money claimed back in taxes… It is not too good to be true!

“I’m really busy, how long will it take?” 

At Harmoney we take an hour of your business time.

“It sounds too good to be true” 

The Government invested £7 billion into the scheme last year to provide financial support to UK businesses, which ultimately helps strengthen the economy. As companies grow, this in turn creates more money claimed back in taxes.

“My accountant told me to stay away from it” 

HMRC are tightening up on things, with a suspected 100 new employees dedicated to challenging the integrity of the R&D claims.  This means that it is more important than ever that you choose an R&D specialist which you can trust. One that will deliver every penny you are entitled to whilst ensuring that your claim is robust and compliant with HMRC guidelines.

Can HMRC investigate?

HMRC can investigate any area of tax, they have the right to make sure you are doing things properly. This stresses the importance of choosing an R&D specialist who has years of experience with R&D Tax Relief and fully comprehends HMRC’s guidelines.

Can they ask for the money back?

In short, yes. However, this is only when the claim is investigated and deemed to be unjustified. You must choose a provider that is trustworthy and will only identify genuine areas of your work which meet the criteria. It is also worth checking that your provider has insurance that covers worst-case scenarios to ensure you are not left paying back any money once the fee has been taken.

Can we claim every year?

Yes, you can. However please do not feel obligated to sign up for multiple years with one provider. There are many R&D firms who tie clients into lengthy contracts – what we do instead is allow our great results to ensure our clients come back year on year. We do not tie you into any future years

How much will I get back?

 The claim is calculated based on costs such as PAYE, sub-con, wasted materials and consumables. The majority of our client’s turnovers are made up of labour and material cost. What determines the percentage of these costs you get back; is often the level of detail we can go into around the client’s business activity. Typically, the more money you have spent on these things and the more challenging your work is, the more you will receive back.

Can I just do it myself?

In short yes you can, however, given the level of detail, which is required, it is not advised. These claims require a complete understanding of HMRC Research & Development Scheme guidelines. Even for a team of Chartered Engineers and Accountants with vast experience in delivering R&D Tax Relief, it generally takes around 4-6 weeks to complete this exercise successfully.  Your business time is crucial, which is why we do all the work in the background and only take up to 1 hour of your time.

Shouldn’t my accountant know about this?

Although your accountant is a financial expert, it is likely that they will not understand the more technical areas of your work. To successfully complete an R&D claim you need both financial and technical expertise. Therefore we dedicate an Engineer and Accountant to all of our clients.

Why would I use an R&D Specialist?

It is more important now than ever before to use a specialist for your claim to ensure that your claim has integrity from both a financial and technical standpoint. Having a chartered Engineer & Accountant that has vast experience in delivering R&D claims will result in you having a far more detailed and justified report as well as robust enough to stand up to any questions from HMRC. At Harmoney, our team are comprised of Chartered Accountants & Engineers who have delivered claims for some of the largest and well-known brands across the UK. We are sector specialists across a broad range of Engineering, Construction and Manufacturing Disciplines. With many years of experience working for members of the Big 4, our team of experts will claim you back every single penny you are entitled to, whilst working in line with HMRC guidelines

To summarise we will only take 1 hour of your business time, you will have an experienced Chartered Engineer & Accountant working on your claim who will deliver a robust report, claiming you back every penny you are entitled to. Best of all, we work on a success fee basis, which means you only need to pay us when you receive your money back from HMRC.

If you have any more questions or would like to find out if you are eligible for the scheme please contact our team on: 0141 378 9200

%d bloggers like this: