In the evolving landscape of UK R&D tax relief, the Professional Conduct in Relation to Taxation (PCRT) has emerged as a pivotal framework ensuring ethical and competent advisory services. Contrary to misconceptions, PCRT isn't exclusive to members of specific professional bodies; it's a comprehensive standard jointly developed by leading UK accounting and tax associations, including ICAEW, ATT, and STEP. This framework outlines the fundamental principles and standards that all tax professionals, including R&D advisors, should adhere to when providing tax services.
What Is PCRT and Why Does It Apply to R&D Tax Advice?
The PCRT sets out five fundamental principles:
- Integrity: Being transparent and honest in all professional dealings.
- Objectivity: Avoiding bias, conflicts of interest, or undue influence.
- Professional Competence and Due Care: Maintaining up-to-date knowledge and skills to provide competent services.
- Confidentiality: Respecting the confidentiality of information acquired during professional work.
- Professional Behaviour: Complying with relevant laws and regulations and avoiding any conduct that discredits the profession.
Key Metrics Reflecting Our Commitment to Excellence
Our dedication to excellence distinguishes us in a time of unmatched change and innovation. We take great satisfaction in being one of the fastest-growing independently-owned companies committed to promoting innovation. We have a strong presence and have offices in the UK, Canada, and India. Key measures that accurately show our unwavering desire for innovation and excellence serve as a reminder of our success:
- Exceptional Talent Pool: We are proud to have very senior ex-Big4 professionals working for our company, all of whom are experts in various fields of technology. Our team are an impressive force of technological know-how ready to propel innovation within your business. They are a diversified group of life science experts, software architects, data scientists, cloud specialists, and AI engineers holding STEM degrees with qualifications such as MSc. and PhD.
- Diverse Clientele: Our customer list serves as evidence of our dedication to quality. We provide our services to FTSE-listed companies, multinational firms, premier financial institutions, and ground-breaking software innovators. We have produced a significant return on investment (ROI) of more than £100 million for our clients over the years.
- Premier R&D Tax Credits Service Team: One of the largest R&D Tax Credits support teams in the UK has formed a strategic agreement with us. Our expertise in the field guarantees that our clients have access to top-tier knowledge, improving their efforts to innovate.
- Proven Track Record: Our team has more than 75 years of combined experience, and we have a successful history in the field of R&D Tax. Our knowledge has helped our clients save more than £1 billion, enabling them to build and sustain their businesses.
- Technological Prowess: Our company has several skilled software engineers who are not just knowledgeable with R&D Tax. They play a key role in developing cutting-edge tools and products for a variety of clients, including FTSE100 firms.
These principles are particularly pertinent to R&D tax advisors, who play a crucial role in preparing, submitting, and advising on R&D tax claims. Given the complexity of R&D tax relief and the potential for significant financial implications, adherence to PCRT ensures that advisors provide accurate, ethical, and competent services.
Why PCRT Matters in the R&D Tax Landscape
R&D tax relief is a specialised area requiring both technical and legislative expertise. Advisors must accurately assess which activities qualify as R&D and determine the associated eligible costs. Non-compliance or inaccuracies can lead to HMRC enquiries, potential penalties, and reputational damage. By adhering to PCRT, advisors demonstrate their commitment to ethical standards, reducing the risk of errors and ensuring that clients receive reliable guidance.
Choosing the Right R&D Tax Advisor: Key Considerations
When selecting an R&D tax advisor, consider the following:
- Industry Experience: Does the advisor have a track record of handling claims in your sector? They should provide relevant case studies demonstrating their expertise.
- Technical Assessment: Have they independently verified that your activities qualify as R&D under current legislation? They should guide your technical team in identifying eligible projects.
- Cost Analysis: Can they clearly distinguish between claimable and non-claimable costs, such as software, consumables, or subcontractor expenses?
- Methodology: Do they conduct in-depth assessments, reviewing your systems and engaging with your technical team to accurately identify R&D activities and associated costs?
- Documentation: Do they assist in preparing mandatory documents like the Additional Information Form (AIF) and provide supplementary reports to preempt HMRC queries?
- Legislative Updates: Are they proactive in informing you about recent or upcoming legislative changes that could impact your current or future claims?
PCRT at ResearchQX
At ResearchQX, we are committed to upholding the highest standards of professional conduct as outlined in the PCRT. Our team regularly engages in continued professional development to stay abreast of the latest developments in R&D tax legislation and best practices. We integrate these updates into our approach, ensuring that each claim we prepare is accurate, well-founded, and compliant.
Understanding that R&D claims are incorporated into your tax computations and corporation tax returns, we collaborate closely with your accountants to facilitate the filing process. Our support includes:
- Providing clear explanations of our claim methodology and assessment approach.
- Assisting with additional disclosures, such as the AIF.
- Offering guidance on R&D number entries into tax returns and computations.
- Addressing any other filing-related support your accountants may require.
Should HMRC raise any enquiries or compliance checks regarding the claims we've submitted on your behalf, we offer full support to manage and resolve these matters effectively.
Conclusion
Adherence to the PCRT is not just a regulatory requirement; it's a commitment to ethical, competent, and professional service. In the complex field of R&D tax relief, partnering with an advisor who upholds these standards is crucial to ensuring the accuracy and integrity of your claims. At ResearchQX, we pride ourselves on our dedication to these principles, providing you with the confidence and support needed to navigate the R&D tax landscape successfully.
If you're engaged in innovative activities and wish to explore how R&D tax credits can benefit your business, contact us today. We look forward to learning about your projects and discussing how we can assist you.
