Breakthrough Funding is not an accountancy practice and has no aspirations to be one. We specialise in writing technical reports for R&D tax credit claims and valuing the innovation costs involved. That’s it. We've even written a book called "The Accountants Guide to R&D Tax Relief".
We don’t ask our clients to sign a 64.8 so we’re not their official agent and we don’t do tax calcs, give tax advice (ever) or submit their corporation tax returns. All we ask is for a letter of authority so we can talk to HMRC about their R&D tax credit claim only (mostly chasing them to get our clients paid!). We have absolutely no wish to interfere with an accountant’s relationship with their client. We’re simply a specialist R&D tax relief company that works closely with accountants. We believe this adds value to your services.
Our process is explained from start to finish here.
If you want to submit claims yourself, download our "The Accountants Guide to R&D Tax Relief" here, it's easier to understand the full detail of the legislation, rather than trawling through the .gov website. Or you could ask us to come in and train your staff . . .
R&D tax relief training for accountants
We know how challenging it is 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, or the glut of companies who have a 31 March year end. It's the huge number of clients we've worked with recently, who say their accountant is adamant they are NOT eligible for R&D tax relief.
In just two instances recently, 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 believed the client was ineligible. That client has just received a BACS payment from HMRC of £145,000. These are not big companies; both turnover less than £10million.
There is good reason for this - HMRC have changed the goalposts quite a bit since the original scheme was launched, and without knowing it, accountants are putting their reputations at risk if they still believe that 1) R&D tax credits are only for clients who are making a profit and have paid corporation tax (completely untrue), or 2) that in-house software development or developing new products in a factory are not included in the scheme (they didn't used to be but they are eligible now and we are seeing successful claims from literally every type of sector imaginable) or 3) you only get tax relief and not cash payments (most of our clients receive cash and do not take the tax relief).
Our tax regime is the most complex in the world - it's almost impossible to keep up with every single legislative development. So in order to protect accountants, we're offering practical FREE training courses in spotting and filing R&D tax relief claims. It's designed for candidates that are part-qualified or qualified accountants. It's also been designated as 3 CPD points with certification on completion.
The course includes:
- Submission and content of the technical report required by HMRC
- A detailed explanation of the categories of qualifying expenditure
- Applying to HMRC for 'retrospective' and 'in year' claims
- The definition of “R&D” as defined for tax purposes in ICTA88/S837A
- How the scheme is affected by grant funding
- Case studies from a range of sectors from engineering to software development
- How to identify which of your clients is eligible
Candidates are provided with a copy of “The Accountants Guide to R&D Tax Relief” and other high quality training materials. So if you would like us to arrange something bespoke and in-house we'd be happy to come and see you, just email firstname.lastname@example.org
Why do so many accountancy practices use specialists for R&D tax credit claims?
Collating the costs associated with the R&D activity is relatively simple. All we need is the cost of salaries, prototype materials and subcontractor costs directly related to the innovation project/s.
But it’s understanding the innovation in detail and matching that against the relevant legislation that is the difficult part. That’s our skill. We have consultants who are engineers, designers, software experts or have worked in manufacturing. We spend hours talking to a techie about how he’s using artificial intelligence protocols to develop an algorithm that produces automated passwords or an engineer about the latest CNC developments they're working on. We write up such innovation projects for HMRC pinpointing why our client’s development work fits the legal definition of R&D for this scheme. We then assign the relevant costs against that report.
We work on a percentage contingency fee and not an hour or day rate. We’ll never put a report through unless we’re certain (as we can be), that it fits the criteria. We then take any informal queries from the R&D specialist tax inspectors and handle any formal enquiries on behalf of the client.
Working with us
Our consultants have worked collaboratively with a range of practices to deliver R&D tax credits as an integral part of their accountancy service. We call it the Breakthrough Partnership. We pay referral fees or pass savings directly to your clients depending on your preference. Please contact Brady Last on 0800 772 0800 or email @email@example.com to find out more about becoming an official Breakthrough Funding accountancy partner.