WE WORK WITH A NUMBER OF ACCOUNTANCY PRACTICES AS THEIR "R&D ARM".
Breakthrough Funding is not an accountancy practice and has no aspirations to be one. We specialise in writing technical reports for R&D tax relief 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 accountancy partners include; Magee Gammon, Crowe Clark Whitehill, McBrides, McCabe Ford Williams, Blue Rocket Accounting, Aspirations Accountancy and Beresfords.
For more information on how we help accountants, click here to go through to our Breakthrough Partners website.
IS THE R&D SCHEME A TAX DODGE AND WILL IT ADVERSELY RAISE THE PROFILE OF MY CLIENT WITH HMRC?
No and no.
As stated by HMRC: “R&D tax credits are a tax relief designed to encourage greater R&D spending, leading in turn to greater investment in innovation. They work by reducing a company's taxable income by an amount equal to a percentage of the company’s allowable R&D expenditure. Small and Medium-sized Enterprises (SMEs) can also claim a payable credit if they are loss-making.”
In the report “The Evaluation of Research and Development Tax Credit” published by HM Revenue and Customs in March 2015, their evaluation shows that for each £1 of R&D tax relief given, it generates between £1.53 and £2.35 of expenditure. Therefore, all sides of the political spectrum across government are keen to embrace the R&D tax relief scheme and encourage as many SMEs as possible to apply.
However, a survey carried out by Management Today shows that 94% of companies consider innovation a high or medium priority but only 20% of these claim R&D tax relief. The main reason stated by these eligible companies who do not apply, is their lack of understanding of the R&D tax credit incentive and numerous misconceptions around it. The report goes on to state that 47% of businesses that get an R&D payment hire new staff.
It is really important to our economy to encourage SMEs to apply. As an accountancy practice, if you feel you don’t have the internal expertise to carry out claims, please ask us to become a partner. We’re happy to do this for a short period until your team acquire the skills themselves and become self-sufficient, or we can come in and do free R&D tax relief training (it’s got 3 CPD points too). Why do we do this for free? Because we're a social enterprise and for us it’s more important that a company claims R&D money at all, than who carries it out for them.