# Adding Revenue through R&D Tax Relief Service Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-07 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Expanding Revenue for Accountants: Leveraging R&D Tax Meta Description: Discover how accountants can leverage their trusted advisor status to offer R&D Tax Relief services, adding value and strengthening client relationships. URL: https://financedigest.com/adding-revenue-through-rd-tax-relief-service-2html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-929333806-1736815275963-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/mike-dean-450x449-1736815275997-compressed.jpg) _By_ **_Mike Dean,_** _Managing Director,_ [_WhisperClaims_](https://www.whisperclaims.co.uk/) _,_ _In a commodity compliance market, accountants need to generate new revenue streams – but they also need to build the strong relationships that are key to long-term client retention. Mike Dean, Managing Director, explains why it is a perfect time for accountants to leverage their trusted advisor status and productise an array of services, including R&D Tax Relief, to add value and get ever closer to clients._ **Expanding Revenue** With traditional accountancy services rapidly reaching commodity status, price pressure [continues to increase](https://www.financedigest.com/multilocal-continues-hiring-spree-following-increasing-demand-for-its-services.html "multilocal continues hiring spree following increasing demand for its services"). Enjoying ever-decreasing [profit margins](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins") in book-keeping and accounts preparation, accountants are exploring a raft of options in a bid to add revenue. Adding new customers to the mix is both an expensive process and, given the competition, a [race to the bottom in a commoditised market](https://www.financedigest.com/automotive-racing-seats-market-is-projected-to-grow-with-a-cagr-of-8-10-for-the-forecast-period-of-2021-2031.html "Automotive Racing Seats Market is projected to grow with a CAGR of 8% – 10% for the forecast period of 2021-2031"). To create a more profitable business model, growing numbers of accountants are tapping into new areas of [service provision that can leverage the existing client](https://www.financedigest.com/brand-metrics-bolsters-client-services-team-as-brand-lift-measurement-booms.html "Brand Metrics bolsters client services team as brand lift measurement booms") base. What services will be the most valuable – to both [clients and the business](https://www.financedigest.com/impact-com-appoints-a-raft-of-new-business-development-representatives-as-the-technology-companys-client-roster-grows-by-more-than-50.html "impact.com appoints a raft of new Business Development Representatives as the technology company’s client roster grows by more than 50%")? How can a firm build the right expertise, entice existing clients to embrace new [service options and, critically, create a service that can be delivered at a price point](https://www.financedigest.com/service-the-cfo-why-context-is-worth-80-iq-points.html "Service & The CFO: Why Context Is Worth 80 IQ Points") that is both profitable and compelling? While [firms have been exploring areas such as pensions and investment advice](https://www.financedigest.com/some-credit-suisse-at1-bondholders-seek-legal-advice-law-firms.html "Some Credit Suisse AT1 bondholders seek legal advice -law firms"), one of the biggest areas of opportunity – and one that delivers considerable value to clients – is R&D Tax Relief. While this may come as a surprise to [accountants who have avoided](https://www.financedigest.com/scams-avoided-how-to-prevent-bank-account-scams-in-2023.html "Scams Avoided: How to Prevent Bank Account Scams in 2023") this area due to perceptions of complexity, several factors are combining to make this the perfect time for a rethink. **R&D Support** One of the most positive changes is that HMRC’s current focus on [improving R&D Tax Relief compliance is reframing the way](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") companies and advisors approach this area – and, finally, putting paid to the ‘black magic’ nonsense propagated by dedicated R&D consultants over the years. Yes, there are 500 pages of guidance from HMRC which can appear daunting – but the information is perfectly accessible for qualified accountants with a [firm grip on tax](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") legislation. Secondly, technology, advice and education are now in place to [support accountants every step of the way; from learning the scheme, to the process of discussing science and innovation with clients, and completing the R&D Tax Relief claim](https://www.financedigest.com/5-ways-the-fs-industry-can-support-the-recovery.html "5 ways the FS industry can support the recovery"). [Accountants can now build on their existing client knowledge and trusted advisor](https://www.financedigest.com/reckon-one-builds-momentum-with-strong-backing-from-accountants-joining-the-cloud-advisor-programme.html "Reckon One builds momentum with strong backing from accountants joining the Cloud Advisor Programme") status to rapidly create a new service line that is both profitable and reinforces the client relationship. Finally – and most important – is the value of the claims. With one R&D [Tax Relief platform reporting an average claim size of £130,000 of eligible](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official") spend, equating to around £30,000 of tax relief, this is a service that delivers more quantifiable value to clients than anything else accountants are offering right now. **Getting Started** Once accountants have embraced the concept of R&D, it doesn’t take long to [create a profitable service](https://www.financedigest.com/veritone-launches-marvel-ai-a-complete-end-to-end-voice-as-a-service-solution-to-create-and-monetise-hyper-realistic-synthetic-voice-content-at-commercial-scale.html "Veritone Launches MARVEL.ai, a Complete End-to-End Voice-as-a-Service Solution, to Create and Monetise Hyper-Realistic Synthetic Voice Content at Commercial Scale") model. As professional advisors, [accountants already have an in-depth knowledge of client](https://www.financedigest.com/accountants-can-add-even-value-offering-clients-new-breakeven-cis-calculators-downloadable-app.html "Accountants Can Add Even More Value by Offering Clients New Breakeven and CIS Calculators from Their Own Downloadable App") activities, which makes it far easier to identify those clients most likely to qualify. This process can be accelerated by using an independent Portfolio Review [service which assesses client](https://www.financedigest.com/bny-mellon-strengthens-support-for-treasury-services-clients-in-germany-with-appointment-of-gungor-taner.html "BNY MELLON STRENGTHENS SUPPORT FOR TREASURY SERVICES CLIENTS IN GERMANY WITH APPOINTMENT OF GÜNGÖR TANER") information and highlights those most likely to qualify for R&D tax relief. At this point, accountants can then embark on a conversation with clients about their use of science and [technology to achieve innovation](https://www.financedigest.com/cloud-professional-services-market-to-be-driven-by-technological-innovation-tmr.html "Cloud Professional Services Market to be Driven by Technological Innovation | TMR"). At every stage, the process can be [supported by R&D tax relief technology](https://www.financedigest.com/uk-launches-270-million-pound-fund-to-support-green-heating-technology.html "UK launches 270 million pound fund to support green heating technology"), to help accountants frame the conversation – and if difficulties arise, a helpline can provide extra insight. Furthermore, with a dedicated R&D tax relief solution, accountants can [create a repeatable process](https://www.financedigest.com/growth-of-mineral-processing-and-mining-industrie-is-creating-demand-for-rotary-trommel-market.html "Growth Of Mineral Processing And Mining Industrie Is Creating Demand For Rotary Trommel Market"). This not only means more claims can be completed – but also introduces the chance to build a fixed fee model – an approach far more compelling than the contingent [claim fee percentage charged by dedicated R&D tax](https://www.financedigest.com/lets-get-fiscal-how-to-understand-rd-tax-claim-eligibility.html "Let’s get fiscal – How to understand R&D Tax Claim Eligibility") consultants. **Deep Relationships** Of course, some accountants have been making a small fee on R&D tax [relief over the years by referring clients to third-party providers](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers"), but why let another organisation into a client’s business? It is not that complex and, more importantly, the process of talking to clients about the potential for R&D [tax relief is a great opportunity to discuss the business](https://www.financedigest.com/are-there-tax-breaks-for-business-health-insurance.html "Are there tax breaks for business health insurance?"), a process that often raises new service opportunities. From cash flow advice to loan and grant applications, even if a client doesn’t qualify for R&D tax relief, both [accountants and clients will gain value](https://www.financedigest.com/iris-acquisition-enables-accountants-to-add-greater-value-to-their-clients.html "IRIS acquisition enables accountants to add greater value to their clients") from the process. At a [time when technology has not only commoditised compliance but also created distance between accountants](https://www.financedigest.com/its-time-for-real-time-accountancy.html "It’s time for real time accountancy ") and clients, adding R&D tax relief services to the portfolio not only unlocks a potential new revenue stream but also underlines the value of the accountant as a trusted advisor. It ensures the accountant retains control over every aspect of the client relationship and creates a new level of engagement that will ensure clients [understand that a high-quality accountant provides far more than commodity](https://www.financedigest.com/a-brits-guide-to-understanding-commodity-trading.html "A Brit’s Guide to Understanding Commodity Trading") compliance services. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---