Accountant or R&D Tax Specialist: Know the Difference

3 October 2024

What’s the difference between an accountant and an R&D tax credit specialist? We delve into these professions to decipher the key role of accountants, the act of an R&D advisor, why understanding HMRC policy is crucial to R&D tax relief, and how the two professions collaborate to strengthen innovative businesses.

When considering accountants and R&D tax credits specialists, it can be easy to confuse their roles. While both deal with the financial aspects of business, one is primarily responsible for a specific area of HMRC policy. 

In order to clarify the differences, we’ve taken a deep dive into the roles of each profession, and how they can combine their efforts to support businesses with all their financial needs. 

Key Role of an Accountant

Managing the financial health of businesses, organisations and even individuals, accountants play a vital role in finance. With the aim of ensuring compliance with the latest laws and regulations, accountants are typically charged with preparing financial reports that provide insights into their clients financial performance.

Their profession usually also involves the following:

• Assisting in tax planning 
• Filing taxes
• Advising clients on budgeting
• Developing financial strategies

Essentially the key role of an accountant is to assure that clients operate within financial guidelines, while providing expertise that help clients to make informed decisions regarding their finances. Due to the broad scope of their knowledge, accountants are generally well suited to understand the typical tax regulations and policies that aid clients in verifying their financial accuracy.

Key Role of an R&D Tax Credit Specialist

With a direct focus on the application process of R&D tax credits, specialists in this area dedicate themselves to aiding in the procurement of tax relief for their clients. Given their unique focus on one area of the tax system, R&D tax credit specialists usually have the ability to navigate the depths of HMRC policy and legislation. 

Typically R&D tax credit specialists will aid the client in:

• Verifying qualifying technical uncertainties 
• Identifying key expenditures
• Compiling necessary documentation
• Writing technical reports

Put simply, the key role of an R&D tax credit specialist is to collaborate with innovative businesses that have been investing in research and development, in order to form a comprehensive claim. Considering their central purpose is to ensure accuracy in one specific area of finance, specialist advisors make it their priority to understand in depth, the scope and limitations of the R&D tax credit initiative. 

Why Understanding HMRC Policy for R&D Tax Credits is Important

The R&D tax credits incentive was formed as an incentive for innovative businesses to invest in scientific and technological advancement. It does this by allowing businesses to claim back a considerable amount of their expenditure, making it one of the UK’s most lucrative government backed initiatives. 

By understanding the specific criteria laid out by HMRC, R&D tax credit specialists are able to maximise the benefits of the relief, which can either reduce client tax liabilities, or offer them a cash reimbursement. 

Furthermore, a deep grasp of the legislation allows specialists to produce in depth claims that may stand up to scrutiny, should HMRC open an enquiry.

Understanding HMRC Enquiries

With a duty to ensure the accuracy of claims, HMRC may challenge an R&D claim via an enquiry. This can happen for an array of reasons, but considering the primary purpose of the enquiry is to combat trial and error, the most common reasons for an HMRC enquiry are:

• Insufficient evidence 
• Exaggerated costs
• Uncertainty as to whether the project qualifies

For more information on HMRC enquiries, click here.

How Can Accountants and R&D Tax Credit Specialists Work Together to Benefit Businesses?

By combining their expertise, accountants and R&D advisors can provide clients with a well rounded financial service. With accountants providing tax advice and financial planning while R&D specialists aid in supporting innovative businesses in filing for additional relief based on their investment in research and development, the collaboration of the two may form an alliance that places clients first. 

This is why we’ve developed a Partner Programme designed to support clients through all their financial needs. 

Get Specialist R&D Services With Alexander Clifford

As leading R&D tax credit specialists, our team at Alexander Clifford takes pride in providing clients with a 5-star service. Combining adept knowledge of HMRC policy with a dedication to maximising client benefits, our team has compiled and submitted upwards of 2,400 claims. 

This is what makes Alexander Clifford your trusted choice for R&D tax credits. 

Fill in the contact form below to get started with our specialist team, or click here to learn more about our Partner Programme.