It’s felt like a rollercoaster ride over the past few years in the world of R&D tax credits. We’ve had a host of reforms to the scheme, increased scrutiny from HMRC, and unfortunately seen a handful of advisors pushing companies to claim unqualified R&D just to line their pockets.
Finding the right advisor in today’s world is harder than ever. How do you find the specialist who’ll deliver the relief you deserve and how do you avoid spending 18 months battling an HMRC enquiry? A key indicator of a trusty advisor is their fees, surely higher fees equal a better service?
At EmpowerRD, we don’t agree with that statement. We only charge 5%—one of the lowest rates in the industry—and we pride ourselves on having a low enquiry rate (3.4%). No company should pay more than 10% of their claim value, and high fees are one of the main reasons we started in 2017.
While compliant claims are essential now, it’s equally important that taxpayers’ money reaches those it’s intended for—the innovative businesses pushing the economy forward.
The problem in the industry
R&D tax credits have changed significantly in recent years mainly for the better, with compliance at the heart of this change. HMRC has doubled its R&D compliance team, and as of August 2023, all claims must be submitted digitally alongside a new additional information form (AIF). This form requires details about the company’s named officer, the R&D advisor, and supporting information on R&D activities.
Increased scrutiny is effectively cleaning up the industry, as the error and fraud rate for claims has decreased from 17.6% in 2021-22 to 7.8% in 2023-24. However, the ongoing scaremongering and companies’ push for compliant claims highlight a concerning trend we’ve noticed since EmpowerRD first entered the market back in 2017—advisors are continuing to charge excessive fees.
The necessity for compliance and the added complexity of claiming has further strengthened the argument for higher fees, with some businesses paying as much as 40% of their claim value.
While many R&D specialists promise compliant claims, their processes are often inefficient and come with hidden costs. For instance, many advisors charge extra for submitting the AIF and providing enquiry support. Most lack modern technology to speed up the claims process, relying on lengthy manual methods to gather technical and cost data, resulting in higher costs.
This undermines the financial benefits of R&D tax credits, which are designed to foster innovation.
EmpowerRD’s solution
At EmpowerRD, we entered the market to address the challenges the industry faces and set out from the start to provide a better solution. By combining expert knowledge with technology, we have streamlined the claims process, making it more efficient and cost-effective for businesses while ensuring fully compliant claims.
Leveraging technology
Our platform is the first of its kind in the R&D tax credit space, designed to simplify and accelerate the claims process. It enables our R&D specialists to quickly identify high-risk areas and opportunities for optimisation. Continuously refined by a team of R&D experts, our platform adheres closely to HMRC guidelines with a set of rigorous rules.
Additionally, it integrates seamlessly with accounting software for quick cost collection, offers collaborative tools for easy technical data capture, and provides ongoing risk assessments to ensure your claim remains compliant. This ensures accuracy and efficiency while reducing the time and effort required to prepare and submit a compliant claim.
A good tool is only as good as the team using it…
Expertise and Quality
Our team includes R&D specialists (ATT-qualified tax professionals, ex-HMRC inspectors, and PhD-qualified technical experts) who bring a wealth of experience and knowledge to the table. Our proprietary platform allows them to focus on the critical aspects of the claims process to ensure your claim is compliant.
- Cost compliance and optimisation: Regardless of the claim, our team of experts conduct multiple checks throughout the process to ensure all costs are compliant with HMRC’s guidelines while ensuring the claim is as optimised as possible.
- Technical Narrative: Every claim is crafted by our technical narrative drafters to ensure full compliance. When necessary, we set up a call with one of our R&D experts to go over your technical information to ensure further accuracy and compliance.
- Risk Assessment: Throughout the claims process and before submission, our claims quality team conduct thorough risk assessments to ensure there are no errors or mistakes in the claim, minimising the likelihood of enquiries and ensuring a smooth process to payout.
By focusing on these key areas, we deliver high-quality submissions with significantly lower enquiry rates and costs.
The EmpowerRD advantage
At EmpowerRD, we keep things simple—charging just 5% or less of the final claim value, and we offer some of the lowest rates in the industry. This clear fee structure means that more of your hard-earned money goes to the innovative businesses that are pushing our economy forward.
Since opening our doors in 2017, we have proudly processed claims for over 1,200 companies, totalling more than £200 million, and we’ve maintained a low enquiry rate of just 3.4% across all claims. Our dedication to quality and transparency has established us as a trusted partner for businesses looking to leverage R&D tax credits without the burden of excessive fees.
Get in touch
If you’re looking for an R&D tax credit advisor who combines expert knowledge with cutting-edge technology to deliver efficient, compliant claims at one of the lowest rates in the industry, look no further than EmpowerRD. Get in touch today to learn more about how we can help your business optimise its R&D tax credits and drive innovation forward.
