Frequently Asked Questions FAQS

Too many questions but don't know whom to ask. Welcome to our FAQs where we try to answer any important question you may have

Are service businesses eligible to claim R&D tax credit and how can one go about the same?

Yes, they are eligible. Check the next link (section “Projects that count as R&D). It is also relevant for the previous question. https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief

Are service businesses eligible? Can one make claim for prior years and what is the procedure for the same? To claim R&D tax credit and how can one go about the same?

Yes, you are allowed to claim for R&D tax relief 2 years back. This link explains it well: https://forrestbrown.co.uk/knowledge-bank/how-far-back-can-I-claim-r-and-d-tax-relief/

If I engage a consultant can they represent us with the concerned Government authorities?

Yes, it is a common practice that the consultants liaise with HMRC (the authority in charge of the R&D tax relief) to discuss claims.

What are the things to keep in mind while hiring a consultant?

Experience and specialization. Both are important. In terms of specialization, sometimes accountants come in the field of R&D tax but we know by experience that they are not able to maximize the benefits

Can R&D tax software replace hiring a consultant?

No, no way. The “consultancy work” needed to assess the eligibility of each cost item,  usually “tweaking” arguments and project rationales  is nowadays not possible to imitate by software (at least in our view)