R&D Consulting was formed with the simple aim of helping all eligible companies in the UK claim R&D tax relief. But that was in 2012 and much has changed since that time. Back then, there wasn’t a lot of advice for companies when it came to R&D tax relief unless they were with one of the big accountancy firms. For about 5 years, we gently educated companies and accountants – helping a lot of companies claim R&D tax relief and helping others understand that although they were undertaking research and development, they didn’t meet the criteria for R&D tax relief.

Then the landscape started changing and an abundance of R&D advisors emerged, poorly equipped to offer advice on R&D tax relief but offering it nonetheless. This is when our role in advising companies when they DON’T qualify became so much more important. We don’t make any money doing this, but we have stopped hundreds of companies opening themselves up to penalties which may not have become apparent until years later.

As HMRC does not check most R&D claims, the failings of poor R&D advisors have mainly gone unnoticed, but the knock-on effect hasn’t. HMRC is fully aware that a large percentage of claims submitted shouldn’t have been and funds are being given to companies which aren’t entitled to claim them and is taking steps to address this issue. It has employed and trained more staff so that more claims can be checked, and legislative changes will make it easier to spot the advisors causing these problems.

This is wonderful news but a lot of poorly advised companies will soon be facing the consequences of placing their trust in the wrong advisor. We can help by offering straightforward advice to companies, so they know where they stand. Whether a company has made a claim or not, we can let them know what the best course of action is for their specific circumstance.