Danger - accountants at risk | Breakthrough Funding

Wednesday, January 13, 2016

Danger - accountants at risk

We wouldn't like to be an accountant right now. No, it's not the last minute annual rush of clients who haven't filed their self assessment yet, it's . . .

the huge number of clients we've worked with recently, who say their accountant is adamant they're NOT eligible for R&D tax relief. 

In just two instances in the last couple of weeks, one client's accountant put their R&D tax expenditure for the year at £40,000, when it was actually just short of £500,000, and another categorically claimed the client was completely ineligible. That client has just received a BACS payment from HMRC of £145,000. These are not big companies; both turnover less than £10million. 

Accountants are seriously putting their reputations at risk if they still believe that 1) R&D tax credits are only for clients who are making a profit (untrue), or 2) that in-house software development or developing new products in a factory are not included in the scheme (absolutely not, we are seeing successful claim from literally every type of sector imaginable) or 3) you only get tax relief and not cash payments (wrong, wrong, wrong). 

Our tax regime is the most complex in the world, so it's hardly surprising that accountants are not keeping up with every single legislative development - it's an almost impossible task. So in order to protect accountants, we're offering practical FREE training courses in spotting and filing R&D tax relief claims in partnership with Kent Invicta Chamber of Commerce. It's designed for candidates that are part-qualified or qualified accountants. It's been designated as 3 CPD points with certification on completion.

The course includes:

  • Submission and content of the technical report
  • Itemising the costs of qualifying expenditure
  • Applying to HMRC for “retrospective” and “in year” claims
  • The detailed definition of “R&D” as defined for tax purposes in ICTA88/S837A
  • Categories of qualifying expenditure
  • Calculations for payable tax credits
  • How the scheme is affected by grant funding
  • The relevant boxes to consider on the CT600 form
  • Details of the new Advanced Assurance scheme

We use practical examples with hands-on tasks to complete. Candidates are provided with a copy of “The Definitive Guide to R&D Tax Credits” and other high quality training materials.

If you would like us to arrange something bespoke and in-house we'd be happy to come and see you, just email brady@breakthroughfunding.com or ring us on 0800 772 0800.

There's more you should know