Buying

There is no standard fee for R&D tax relief advice. Costs vary depending on the size and complexity of the claim, the number of projects involved, the quality of the information available and the level of technical and financial support required.

Advisers may charge a fixed fee, a fee linked to the value of the benefit achieved, or a combination of the two. When comparing costs, it is important to understand exactly what is included. For example, does the fee cover project identification, technical interviews, qualifying expenditure calculations, preparation of the Additional Information Form, submission support and assistance if HMRC subsequently asks questions?

The cheapest fee does not necessarily represent the best value. The quality and defensibility of the claim, and the support provided if it is scrutinised, should also be considered.

Both approaches have advantages and disadvantages. A fixed fee provides certainty over cost and avoids the adviser's remuneration increasing simply because the value of the claim increases. However, the scope of work and what happens if additional support is required should be clearly defined.

A contingent or percentage-based fee links the adviser's remuneration to the value of the R&D benefit. This can reduce the initial cost of engaging an adviser, but percentage fees can become significant on larger claims and may create incentives to take a more aggressive approach to eligibility or qualifying expenditure.

Whichever model you choose, look beyond the headline percentage or price. Compare the scope of the service, technical expertise, quality assurance, contractual terms and whether HMRC enquiry support is included.

Many accountants provide R&D tax relief services and some have substantial expertise in this area. The question is therefore not simply accountant or specialist, but whether the people preparing your claim have the appropriate tax, technical and sector knowledge.

A robust R&D claim requires an understanding of the tax rules alongside the ability to identify and explain scientific or technological advances and uncertainties. For straightforward claims, your accountant may have all the expertise required. For larger, more complex or technically demanding claims, specialist input can provide additional assurance.

If your accountant already prepares your claim, appointing a specialist does not necessarily mean replacing them. An R&D specialist can work alongside your accountant or provide an independent review of the existing approach.

A good R&D tax relief adviser should do considerably more than calculate a tax benefit. They should help identify potentially qualifying projects, understand the underlying science or technology, establish where genuine scientific or technological uncertainties arose and determine which activities and costs qualify.

The adviser should also gather appropriate evidence, interview relevant technical and financial personnel, calculate qualifying expenditure, prepare the technical narrative and support the completion of the required HMRC information and tax documentation.

Just as importantly, they should challenge areas that do not meet the qualifying criteria. The objective should be a complete, accurate and defensible claim rather than simply producing the largest possible number.

Look for an adviser that combines tax expertise with an ability to understand the science or technology behind your R&D. Ask who will actually prepare the claim, what experience they have in your sector, how projects are assessed and what quality-assurance procedures are used.

You should also understand how the adviser charges, what is included in the service and what support is available if HMRC opens an enquiry. Ask how the adviser deals with projects or expenditure that it believes do not qualify, and whether it is prepared to challenge assumptions rather than simply accept everything presented to it.

The right adviser should be able to demonstrate a rigorous, evidence-based approach, communicate effectively with both your technical and finance teams and give you confidence that the resulting claim can withstand HMRC scrutiny.