Hundreds of partnered accountancy firms have been left reeling following the sudden closure of tax advisory firm Costcare, understands R&D tax claims specialist, randd uk.
The Timperley-based practice, which advised accountancy and business clients on tax reliefs including R&D, closed its doors on 5 August 2024 after almost 30 years, leaving many clients with unprocessed and unfinished claims and no small amount of uncertainty.
Ryan Sian, Managing Director at randd uk, said: “A closure on this scale always creates uncertainty for many accountants in the sector and their clients, leaving behind unprocessed claims and clients in need of advice.
“We’re always here to help those firms and their clients who are left struggling after the sudden closure of their advisory firm.
“Our team understand the challenges that come with advising on R&D tax relief, particularly for accountancy firms without in-house expertise. It really demonstrates the value of seeking advice from a specialist firm that fully understands the scheme.”
randd uk reflected that sweeping changes to the R&D tax relief scheme and enquiries by HMRC have driven many accountancy firms into partnership with R&D tax specialists, relying on the unique expertise provided by these firms to prepare and submit compliant claims on behalf of business clients.
As a result, specialists within the industry are facing increasing pressure from demand for advisory services and expectations from tax authorities.
New legislation relating to the tax relief has also contributed to the closure of a raft of firms in recent months, says randd uk, as HMRC clamps down on non-compliant claims.
Costcare’s closure comes just months after the shocking collapse of R&D tax firm, RDI Solutions, displacing many accountancy firms and their clients at a time of upheaval for the sector.
Ryan continued: “We know that accountants rely on firms like ours to make sure their clients receive the best service and reclaim everything to which they’re entitled – and to ultimately fulfil the purpose of the scheme to incentivise innovation.
“Clients of Costcare are no different, relying on the advice and support offered by the firm to claim against their most innovative projects. For these firms, the current situation is far from ideal.
“I’d urge any firm that’s now in a difficult position to get in touch with us. We can help you deliver a reliable R&D tax service backed by integrity, experience and a thorough understanding of the claims process.”
