R&D Tax Relief Risk ProfilingFor Accountants

The risks involved with R&D Tax Relief claims

Risks associated with R&D Tax Relief claims generally involve failure to meet the eligibility criteria or not correctly documenting and substantiating R&D activities. Regulations and reporting requirements relating to R&D have changed and must meet mandatory standards, meaning businesses that do not stay current run a greater risk of non-compliance.

Typical risks faced by R&D Tax Relief claimants include:

• misinterpretation of eligible expenditure, which can result in costly disputes and potential amendments to claims
• overestimation of the value of the relief claimed
• claiming under the correct scheme – SME or RDEC.
• inaccurate or incomplete documentation of R&D activities, which can make it harder to defend a claim against investigation

We will help you de-risk your clients

The Radius team are full-time specialists in R&D Tax Relief, which includes an in-depth knowledge of the latest regulations and legislative changes that affect all claims. The ever-changing scheme can be tricky to stay on top of, so Radius offers a dedicated risk profiling service, including a full review of your firm’s ongoing R&D Tax Relief claims on behalf of your clients.

Our goal is to help you better understand and mitigate the risks your clients face. Get in touch today to learn more.

R&D Tax Reliefs are changing

In November 2023, the UK government announced that the current SME and RDEC schemes will be combined into a single R&D Tax Credit scheme. This will take affect for accounting periods beginning on or after 1 April 2024 and will adopt the existing RDEC rate of 20% For loss-making entities in the merged scheme, the notional tax rate will be reduced from 25% to 19%.

For more information about the incoming changes to the scheme, read our full Autumn Statement summary.