07.06.2023 13:30

5 Tips to Consider Before Choosing an R&D Tax Credit Advisor

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Research and Development Tax Credit, or R&D Tax Credit, is an amazing way to upscale the volume of research and development taking place in a country.

For those of you unaware – R&D Tax Credit is a system of tax incentives under which companies that spend funds in developing new products or services become eligible for tax relief. Not only this, if a company enhances a previously developed product or service, then also they can claim certain tax benefits.

This system of tax incentive is prevalent in many countries across the world – Australia, Canada, France, Norway – to name a few. In the UK alone, there have been 59,265 R&D Tax Credit claims as of 2020!

Hence, for a business to enjoy the benefits of this system, it becomes obligatory to hire a professional adviser to guide them. Here are the 5 tips to consider before choosing an R&D Tax Credit Adviser:

Qualifications and experience

The first thing to keep in mind before selecting an R&D Tax Credit Adviser for your company is seeing their qualification and experience in the field.

Generally, an R&D tax credit adviser needs to be a Chartered Tax Advisor. When it comes to experience, however, make sure to select an advisor who has a minimum of 10 years of experience in this field.

An R&D tax credit advisor who is highly-skilled and super-qualified will always yield the best tax claims for the prosperity of your company.

Check the firm’s team

Do not fall into the trap of recognized and big names of the industry, go for an R&D Tax Credit Advising firm that has a team of well-experienced and specialized engineers. Tax Credit is a sensitive task that needs to be done carefully and with exceptional knowledge.

If you choose just any other firm to carry out a task so crucial for you, your company will not be able to enjoy its benefits to the fullest. However, if you deploy a firm whose team is professional in its approach, you are freeing yourself from the worries of misstatements. Rimon’s EMDG and R&D Tax Incentive Grant Consultants is one such firm that is driven by industry specialists.

Evaluate their knowledge about the tax credit system

One of the most important tips to take care of! Before hiring, check whether the firm has knowledge about the central and the state tax credit system. Many times, companies only claim the federal R&D tax credit for the development of a new product or service.

They miss out on the opportunity of claiming tax benefits from the state. The particular reason for this circumstance? The lack of knowledge about the prevailing central and state tax credit among the R&D tax advisers.

Hence, do evaluate beforehand whether the firm is fully acquainted with the tax credit system of your country or not.

Enquire about their client retention rate

The client retention rate is a litmus test to check if the firm is really worth considering or not! Therefore, before going for an R&D tax credit advisor make sure you ask them to present testimonials and documents suggesting their client retention rate.

This will help you understand the firm’s approach and level of expertise. Any firm whose client retention rate is low is definitely not the one you would want to go for.

Their fees structure

Last but never least, one of the most important things you should never miss out on before considering an R&D tax credit adviser is their fee structure. While there is no statutory rate fixed, most firms have their own fixed rate for providing such services.

The catch here is to find out whether the amount charged by them is reciprocated with the service provided by them. Find an R&D tax credit advising firm that provides a fluent service at a rate that is suitable for your company.

Over to you

The R&D tax credit system is a great initiative to enhance the volume of developments taking place in the corporate sector, as it directly affects the overall growth of the economy of the country. But, for companies to take advantage of the best, a good and competent R&D tax advisor is required. Here, we listed the 5 tips to consider before choosing an R&D tax credit advisor. Go through this article by heart, if you are looking forward to claiming benefit under this tax credit incentive.

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