According to a recent study, more than 50% of accountants’ clients are worried about the potential impact of increased complexity surrounding research and development (R&D) tax relief on their cashflow.
The research findings indicate that accountants share this concern, with approximately 61% of those surveyed stating that the alterations to the R&D tax relief scheme have raised the level of business risk within their practice.
While certain recent reforms to R&D tax relief have been positively received, the rapid pace of change and the challenges associated with adapting to new regulations have introduced additional complexities for accountants. The heightened emphasis on compliance by HMRC and the subsequent rise in inquiries have also contributed to the perceived risks linked to R&D tax relief claims.
Furthermore, the study revealed that approximately one-third of accountants have experienced a negative impact on their profitability and fees due to these changes. Additionally, 28% of respondents reported that their teams no longer wish to engage in R&D tax claims at all.
In a noteworthy finding, 50% of the accountants surveyed expressed disagreements with HMRC regarding technical interpretations when submitting claims on behalf of their clients.