What should R&D tax relief support look like?

Where once accountancy firms routinely offered R&D support for clients, many have been deterred over time due to changes in the way that R&D tax relief claims are managed.

There has been a growing sense of confusion around what a good R&D tax relief claim looks like, leading many accountants to believe themselves incapable of offering the necessary quality of support.

With the right advice and guidance from a trusted R&D tax consultant, it should be possible for many more accountants to help their clients with R&D.

Do accountants need to be experts in every sector of science and technology?

A lack of sector experience may be seen as a barrier for some accountants who would want to assist their clients.

The logic behind this is solid, as accountants will have spent years becoming experts in a variety of financial topics and could feel uncomfortable offering advice outside of those.

However, a deep knowledge of science and technology is not entirely necessary for getting started with an R&D tax relief claim, though any experience would help.

What matters most is an engagement with HMRC’s guidance, given that this is where the definition of R&D for tax purposes is outlined.

To make matters more straightforward, the definition can be boiled down to four core points, in that it should:

• Be significant in the sector.
• Not be readily deducible by a competent professional.
• Involve some degree of technical uncertainty.
• Feature work conducted during the financial year.

The Merged Scheme has made R&D tax reliefs more straightforward, as most companies will now claim in the same way – with only R&D intensive, loss-making SMEs eligible for the ERIS Scheme.

Can accountants manage all the necessary parts of an R&D tax relief claim, including enquiries?

Technically, it is possible for an accountant to handle each part of an R&D tax relief claim.

A better question is: why should an accountant be attempting to handle every part without assistance?

Your clients acknowledge that you are better placed than they are to handle finance and accounting matters, so they entrust that service to you.

In the same way, accountants should not be afraid of seeking the service of an R&D tax consultant to enhance the quality of their R&D tax support.

Our expert team work closely with a variety of accountants and is frequently cited as a core reason why they are able to continue providing R&D tax relief services.

Managing an R&D tax relief claim involves understanding how to assess the eligibility of projects, capture that full range of qualifying expenditure, fill out the Additional Information Form (AIF), submit an Advanced Notification Form (ANF) in some instances, write a technical narrative that illustrates the steps taken to achieve an advance and collate evidence to support the claim.

This should be done by working alongside the competent professional of the business and an accountant is often best placed to gather the financial data and ensure that figures are ready to submit alongside the original tax return.

It is possible to submit an R&D tax relief claim as part of an amended return, but HMRC prefers the display of organisation that comes with an earlier submission.

Should the claim be subject to an enquiry, something that can happen to even perfectly legitimate claims, having expert knowledge of how to effectively resolve the situation is vital.

Our team can work alongside yours to provide true value to your clients and allow you to offer high-quality R&D tax relief support with confidence.

If you want to imagine what R&D tax relief support should look like, our team are happy to show you.

Get in touch to discover a more effective way of providing R&D tax relief support to clients.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.