How many of your clients unknowingly miss out on valuable R&D tax relief?
The reality is that countless businesses qualify for R&D tax credits but have no idea they’re eligible or how to apply.
They’re innovating, problem-solving, and improving processes but missing out on financial rewards designed to support exactly that.
As their accountant, you can make a real difference by guiding them through the process of unlocking valuable tax relief. By doing so, you’ll enhance your advisory role – strengthening your relationship with your clients.
You will also potentially attract new clients, offering a service that many other firms no longer provide.
Here’s how to make the conversation simple, engaging, and valuable for them.
Step one – Keep it simple
A lot of businesses assume that R&D tax relief is just for tech firms or scientists, which is one of the biggest misconceptions.
Explain to them that R&D tax credits are there to reward innovation.
So, if your client has spent time and money solving technical challenges, they might be entitled to claim back some of those costs.
However, make sure to highlight that the innovation needs to benefit the industry as a whole, not just their own business.
Step two – Show them the money
Nothing grabs attention like potential savings. Let your clients know that R&D tax relief can:
- Reduce their Corporation Tax bill.
- Provide a cash injection for loss-making businesses.
- Free up funds for future investment.
Use real examples of other businesses’ successes to show them the tangible benefits.
There are plenty of success stories available online, and we can also provide some of our own case studies if you need help demonstrating.
Step three – Tackle the common misconceptions
Your clients may have concerns or misunderstandings that stop them from claiming.
Here are some you might hear:
- “We don’t work in tech, so this isn’t for us.”
- “Our project didn’t succeed, so we can’t claim.”
- “We didn’t invent something completely new.”
- “We don’t make any profit, so we don’t qualify.”
Reassure them that R&D tax relief isn’t just about groundbreaking inventions – overcoming challenges, testing ideas, and improving processes can also qualify.
They may still be eligible even if a project didn’t work out in the end.
For more information about qualifying projects and costs, you can read more here: Who Is Eligible For R&D Tax Credits?
Step four – Make the process easy
Once they’re interested, show them that claiming isn’t as difficult as they might think, especially if they compile all the necessary intel throughout the project, rather than leaving it all until the last minute.
If your clients haven’t claimed R&D Tax Relief in the past three accounting periods, they must submit a claim notification form.
Here’s a breakdown of the process:
- Identify the projects that meet the Government’s R&D criteria, focusing on those involving scientific or technological advancements.
- Determine if they qualify for the merged scheme, SME R&D Tax Relief, RDEC, or another available scheme. This will impact the costs they can claim and the funding they can receive.
- Calculate the total qualifying expenditure for the chosen scheme.
- Complete the Additional Information Form (AIF). This includes details on project costs, technical challenges, and key personnel. Make sure this form is submitted before the Company Tax Return.
- Submit the claim (along with the AIF) directly to HMRC.
Working with R&D tax experts (like ourselves) can help you maximise their claims.
R&D help for accountants
If you require support making R&D tax claims or need further advice on communicating the benefits of the initiative to your clients, please contact our specialist R&D tax consultants.
