IG’s Approach - Why Use IG?
IG have developed a unique analytical process by using the knowledge gained from over 25 years of experience assisting companies developing innovative products and technologies which have been exploited globally. IG’s unique methodology has been recognised by HMRC as comprehensively meeting the requirements under their Research & Development Tax Relief / Credit Schemes.
IG will maximise the Value of the Claim
Performing a detailed technological due diligence and screening process ensures a comprehensive review is undertaken of all projects irrespective of eligibility. In obtaining an accurate blue print of each project from concept to production IG ensures that all potential costs are reviewed maximising on the accuracy, robustness and value of the claim.
IG provides Successful Management
IG has worked closely with the HMRC R&D units to ensure that the layout and detail of information provided is exactly what the HMRC inspectors require. Where a greater level of information is requested only senior personnel at IG handle this stage, maintaining the high level of resource and focus to ensure a speedy conclusion of the claim. Due to our highly respected professional and pro-active service final agreement can be quickly be arrived at without additional workload.
IG support and defend the Claim
Where a claim is prepared correctly and within the scheme rules and guidelines there is unlikely to be a detailed review undertaken by HMRC. However, if this occurs it is reassuring to know that the team at IG have the experience and knowledge to manage the process providing the scientific and technological reasoning, supported by a detailed project cost analysis. A successful resolution requires a detailed understanding of the projects technology in combination with the guidelines and rules of the R&D tax Relief/Credit Scheme. Our knowledge, skills, values and experience are not only respected by our loyal client base in the UK but also by the HMRC R&D Unit inspectors of Taxes who have complimented our approach to the schemes.
Why IG does not recommend a Finance First Approach
This approach requires the company to fully understand the guidelines and rules under the R&D Tax Relief/Credit Scheme (see http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD80000.htm). A claim should be accurately prepared, scientifically and technologically reasoned and referenced, only at this point should the cost be assembled and your accountant able to computate how much of a tax saving you might expect to receive. Apart from the obvious problems for SME’s in terms of resources, roles and responsibilities which have to be multi functional, a lack of experience often leads to projects being missed or over-claimed by the inclusion of ineligible activities or costs. This generally results in fragmented, technically weak and difficult to reason claims, which due to errors and omissions generally receive more attention upon appraisal by HMRC than may otherwise have been the case. The claim is more likely to be challenged and in some cases could be overturned.
IG recommends Technology First Approach
The IG methodology centres on the companies research and development, what scientific and technological advancements have been undertaken and how this compares with the industry sector as a whole. This analysis involves engaging with the senior technical management from the beginning to fully understand the aims, objectives and technological approach in order to fully understand the methods, techniques and technologies involved. This can be measured against current art in order to provide a basis upon which the increase in overall knowledge and capability in the appropriate technology can be scored. IG’s two lead technologists have between them advised more than 1,000 companies on innovation and advanced technology projects across most industrial sectors. This experience places IG uniquely to accurately interpret projects whilst applying guidelines and rules from HM Revenue & Customs. This methodology provides the basis for producing robust and easily defended technology first claims if challenged by HMRC.
IG’s unique team of specialists
Our corporate tax team comprises of experienced technological consultants who are not only highly qualified but have considerable hands on experience working in commerce and industry. Our technologists work alongside the in-house qualified accountants who have expert knowledge of R&D Tax Relief. Our tax specialists have a combined experience of almost 40 years dealing with corporate tax for SME clients. The team have considerable knowledge having assisted in the preparation of over 100 claims under the SME and Large Company Schemes in the last three years and experience in handling negotiations with HM Revenue & Customs working closely alongside other members of our team in assisting clients in respect of enquiries.
IG’s benefits to Accountants
Apart from undertaking review work when a claim has gone wrong once an aspect enquiry is in process, IG are happy to engage with the accountancy profession where we can complement their services. IG already works with a number of accountancy firms in the UK and has achieved excellent results. These forward thinking accountants have realised that our professional services are far in advance of what they can offer individual companies and provide significant added value, helping them with client retention and expanding the services they can offer. The trust that IG have built with HMRC is now being recognised by accountancy firms in the UK.