Feeling confident? Already taken a few tentative steps along the road of R&D tax relief and can't see what all the fuss was about?
Sounds like you’re ready for the ultimate challenge – an unaided foray into arguably the most lucrative area of R&D tax relief – the software and IT sector. Sorry, but STOP RIGHT THERE!
Attractive though it may sound, with an estimated £16.5 billion claimed since its introduction in 2000, the R&D tax relief scheme is full of potential pitfalls when it comes to cashing in on the Government’s generous scheme.
Why exactly? Well if you’ve already dabbled in R&D tax relief, you’ll know that the HMRC guidelines, though well intended, are invariably complex and occasionally contradictory. That puts a lot of IT companies off, even if it’s hard to ignore the ‘£’ signs (with an average initial claim size of over £83,000 in 2016, according to HMRC statistics).
Many of those who do persevere turn to their accountants for help and support. Great you say, but is it really? The fact that the vast majority of defence cases Jumpstart are asked to take on involve IT companies should be enough to make you look again before you leap. The problem is one of specialism.
IT and software companies know their own products inside out, but lack knowledge of the complex R&D tax relief legislation involved, so leave it to the experts. With accountants, it’s the other way around. You may have a working knowledge of R&D tax relief, but when it comes to substantiating what is after all a technical claim – and avoiding a time-consuming and potentially embarrassing HMRC investigation – you’re not going to know your enhanced Python frameworks from your SCORM adaptive sequencing or conventional segmented dynamic page technology.
And why should you! It’s not your job, but it is ours. Which is why so many accountancy firms, including Peak Performance, are delighted to accept a helping hand from Jumpstart. With its ever-expanding team of technical analysts, who combine a comprehensive understanding of the legislation with a deep and meaningful technical knowledge relevant to each sector, Jumpstart has already secured tens of millions of pounds in R&D tax relief for clients, including well over £32 million for clients in the IT sector. Doesn’t that sound reassuring? And here are a couple more sound bites:
“Working in partnership with Jumpstart makes the accountant the hero.”Douglas Aitken, Director, Peak Performance Accountants
“My advice to other accountants is to talk to Jumpstart if they want to enhance the services they offer to their clients."Roger Bloomer, Director, Roger C Bloomer Chartered Accountants
