Kirby & Haslam

Has the R&D Bubble Burst?

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There’s been a lot of talk about whether the R&D (Research and Development) bubble has burst. Some have suggested that the excitement for innovation has dropped, probably because of the increase in scrutiny from HMRC – it’s no secret that more claims than ever are going through compliance checks, and understandably, this is leaving companies questioning if they should even bother putting in a claim.

Don’t be put off by talk of bursting bubbles!

We know how important research and development investment is across the UK – where would we be without all these new products and services? You shouldn’t be put off by an increase in compliance checks – as long as you’re ensuring your project is compliant, and you’re truly eligible for R&D – there’s no problem. A partnership with Kirby & Haslam is one you can trust, we don’t shy away from telling you if you aren’t eligible – and it will save you a lot of heartache in the long run.

Review Financials

Assess the financial impact of the closure on your business. Determine if they were holding any funds relating to your R&D tax credits claim, any fees paid for their services, or any potential refunds due from HMRC.

Evaluate Risks

Identify any immediate risks or financial dependencies resulting from the closure. Understand how it may impact your cash flow and future projects.

What’s so important about R&D?

Let’s set the record straight – the R&D bubble has not burst. In fact, innovation continues to drive progress and transformation across a multitude of industries. Here’s why:

1. Innovation is not static. It evolves with scientific and technological advancements, market dynamics, and new trends. If there are problems to solve and opportunities to seize, there’s a need for R&D.

2. R&D plays an important role in economic growth, competitiveness, and job creation. Governments worldwide recognise its significance and continue to create incentives to keep it flowing.

3. Consumer expectations are constantly evolving and demanding their needs to be met – and how else can we do this but through the research and development of viable solutions.

 

Choosing the right advisor is vital!

Putting your claim in for R&D tax relief can get really confusing, especially if HMRC open a compliance check into your submission. You need expert guidance. Here’s why partnering with the right advisor, such as Kirby & Haslam, is crucial:

Compliance checks

  • An important element of the R&D claim process, and it’s understandable why HMRC do them. It’s important to make sure you’re adhering to regulatory requirements. We are experts in helping businesses avoid common pitfalls when submitting their claims.

 

Strategies

  • R&D claim strategies should be tailored to make sense to your specific goals and challenges. We offer solutions tailored to your needs, so you get maximum efficiency and effectiveness from us!

 

Proactive Support

  • We understand the need to be proactive with our support and guidance. We go beyond compliance checks by offering ongoing assistance and strategic advice to help you stay ahead of the curve and capitalise on potential savings.

How can I make sure my claim is compliant?

Be mindful of common pitfalls that can make your journey a difficult one. Here’s a few things that could trip you up along the way, so they’re worth addressing now:

Lack of Strategy

Embarking on R&D driven initiatives without a clear strategy or roadmap can lead to wasted resources and missed opportunities. Develop a robust strategy that aligns with your long-term objectives.

Inadequate Documentation

Proper documentation is crucial for substantiating R&D claims and ensuring compliance with regulatory requirements. Ensure you maintain comprehensive records and documentation to minimise the risk of audit issues.

Underutilisation of Incentives

Many businesses are unaware of the full range of incentives available for R&D investment. Educate yourself on available incentives and leverage tax credits and grants to maximise your R&D returns. We are more than happy to guide you through this and show you everything that is available to you!

Remember, that first ‘No’ doesn’t have to be the final answer

HMRC’s automated processes aren’t flawless. The sheer volume of compliance cases they’re pushing out the door right now means that some legitimate claims are being unfairly disadvantaged, or incorrectly rejected! If this is the case for you, you’ve got the right to appeal HMRC’s decision and seek a fair assessment, and we will fight your corner in this.  

Hopefully we’ve managed to convince you that the R&D bubble has not burst, and offered some reassurance that it’s still worth pursuing your claims. By partnering with a trusted advisor like Kirby & Haslam, you can navigate R&D with confidence, avoid common pitfalls, and get the best possible outcome for your case. Get in touch today to find out more.