What can competent professionals learn from repeated R&D tax relief claims?

As an expert in your field, you did not get to where you are today by never picking up new tricks.

When first approaching R&D tax relief claims, it can feel like Revenue’s approach is vague and ominous, which can be off-putting when you have other things to focus on.

Over time, we hope that you may learn some of the cadences and we can help competent professionals better engage with R&D tax relief claims.

What lessons should be learnt from R&D tax relief claims?

While it is impossible to avoid Revenue enquiries completely, there are a few pointers that competent professionals can pick up over time to help compile more effective R&D tax relief claims.

We are always on hand to help you craft a valid claim, but knowing what facts and figures to bring with you when we discuss projects and which to leave out is a skill that can be honed over time.

The most notable will be regarding qualifying direct and indirect expenditure.

While it is possible to retroactively work out estimates for how much was spent on R&D, it is always more effective to track these figures as the work unfolds.

This is especially true for businesses that conduct multiple projects at the same time, where one individual may be splitting their time between many different pieces of R&D work.

Knowing what costs to exclude also makes the process more streamlined, so any costs incurred during routine work, for example, should be left out of discussions.

Another important thing to consider is documenting the failures a project endures.

While it might be frustrating to see something go wrong, taking the time to detail why the attempted solution failed and how this informs the rest of the project can result in a stronger technical narrative.

If your R&D tax relief claim is subject to an enquiry, the details of the technical narrative are often helpful in proving that innovative work was conducted.

In the same vein, it is wise to keep a record of your own accomplishments.

If you attend any conferences, undergo any training, or pass any milestones, then records of this can be used to demonstrate why you are considered a competent professional.

Why should competent professionals learn from R&D tax relief claims?

Having a competent professional involved in the R&D is a core part of the R&D tax relief claim.

You have to demonstrate to Revenue that you are continuing to engage with the field of science or technology in which your work takes place to validate your innovations.

As such, it seems logical that you can pick up a few pointers along the way to help your innovations become more apparent to Revenue.

This is especially useful for enquiry defence as enquiries often question the validity of the R&D work as well as the expertise of the competent professional.

We have found that competent professionals who become more familiar with the R&D tax relief process can also better illustrate the value of R&D work internally, as better record-keeping results in stronger claims and more funds being available for the business.

This is why we enjoy working with clients over many years, as we get to forge professional working relationships with a host of competent professionals.

The more we work together, the more we understand the innovations you seek and the more you understand the R&D tax relief process.

To learn more about how to improve your next R&D tax relief claim, or to get started with it, speak to our team today.

Adam Bointon