Compare the market of R&D providers (blog)
One thing’s for certain - when you are in need of a company to do a Research & Development (R&D) tax relief claim for you, there are tons of them out there. However, not all “experts” provide the same quality of service and finding the right one can often be overwhelming.
It's not just a matter of choosing which company offers the cheapest service or is in the closest proximately (after all, advances in technology mean that your R&D provider no longer needs to be on your doorstep - with the magic of Microsoft Teams and Zoom, you can pretty much get access to any expert across the country!).
Instead, you should focus on other, more important, factors including their ability to protect your claim, their reputation within the industry and their knowledge of the ever-changing legislation.
But why is this important?
Since the COVID-19 pandemic, HMRC has launched an investigation to reclaim millions of fraudulent claims. Why? Because every man and his dog asserted themselves to be R&D ‘specialists’. This now means that more claimant companies are being questioned over the content of their application to ensure that all the correct information is included.
If you are working with a reputable company, this process shouldn’t be anything to worry about. They will understand the legislation and your claim inside out, so they will be able to fight for your case. Also, many of these providers will offer free protection for your claim, meaning that you wouldn’t be expected to finance the enquiry yourself, which can be extremely lengthy and expensive.
However, the same can’t be said for less reputable providers.
Also, working with experienced specialists is essential to you receiving the largest benefit for your claim. These companies tend to have teams that consist of not just R&D experts, but also specific industry specialists. This means they know exactly what you can and can’t be claiming for and will also be able to identify areas where you can maximise your claim.
Unfortunately, any company can say what they like on their websites and claim to be more reputable than they actually are. So, do your homework on your R&D provider. Don’t take just take their word at face value - research them, read about them, make sure their content is current and up to date, search their social media, and explore what their claim journey looks like.
Which is the best R&D provider?
Now, it doesn’t take a genius for you to type that question into Google and come up with 101 different pages. But, if you don’t have the time to read all that, I’ve detailed some of the key players in the industry to help get you started:
Catax (Part of Ryan Group)
Catax is as a leading innovation funding specialist. The company’s goal is to uncover hidden value within your business by assessing your R&D/funding opportunities. Headquartered in Manchester with offices across the UK, Catax has recently become part of the globe’s leading tax company, Ryan, and can provide their clients with support with an array of other financial incentives including VAT recovery.
ForrestBrown
With offices in Glasgow, London and Bristol “ForrestBrown is your trusted partner for best-in-class R&D tax advice. Our proven combination of chartered tax advisers, accountants and industry-experienced science and technology specialists bring unmatched expertise to your business and help you secure the funding your innovation deserves.”
GovGrant
Situated in St Albans and working in the innovation space including “R&D, Patent Box and investment- GovGrant matches you with an industry, commercial or technical expert that best suits your business. Irrespective of size and complexity, we will find the right technical expert who can add the most value to your claim.”
GrantTree
Representing the R&D, video game tax relief and innovation funding space. “We are GrantTree. And we are here to make innovating easier. Our specialists will connect you with the funding you need so that you can focus on growing your business”.
Leyton
With offices throughout the UK and “with more than 12 years R&D experience and unrivalled tax and technical expertise, Leyton is ideally positioned to unlock potential value within your business.”
ZLX
With consultants across the UK, ZLX is an R&D tax credit company that specialises in securing claims above the national average. “Our team is led by highly skilled engineers and accountants who all share forensic attention to detail and an eye for the opportunity. This unique combination means we can quickly identify those projects eligible for tax relief including investments in new products, services, software, and processes which free your business up for growth”.
Are you an accountant?
Or, if you’re an accountant, you can also control your clients' R&D claims internally through specialist software. However, you should note that you’ll need to have a good understanding of the R&D schemes and will hold responsibility for submitting the claim should it go to an investigation.
Below are some examples of leading platforms:
Whisperclaims
A fantastic piece of technology that helps accountants handle the process internally. The company provides “Software, learning tools and hands-on support—all the help you’ll ever need to prepare R&D tax claims for your clients.”
R&D Vault
Another great platform which “gives companies across the UK a 100% successful, supported and fast solution to claim their R&D tax credits “
TaxCloud
Supported by R&D tax experts, this software “provides accounting practices with a seamless way to offer a specialist R&D tax relief claim service.”
The best fit
Choosing the right R&D provider will ultimately depend on your specific project and business needs. And what provider may be best for one business, may not always be the most suitable for the next.
The information presented in this blog should give you a head start but be sure to do your own research when selecting the right partner for you. To help you understand what the “right partner” should be doing, check out my blog: “5 Things my R&D specialist should be doing”.
Learn what separates average providers from proper R&D specialists in this blog!
If you have any questions or would like any further information, contact me here or via karen@innovationinsights.uk