# WhisperClaims urges accountants to keep calm and carry on despite reforms to the R&D tax industry
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-05
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: WhisperClaims Urges Accountants to Stay Calm Amid R&D
Meta Description: Learn how to navigate the changes in the R&D tax industry and capitalise on new opportunities to expand services and offer comprehensive client support.
URL: https://financedigest.com/whisperclaims-urges-accountants-to-keep-calm-and-carry-on-despite-reforms-to-the-rd-tax-industryhtml

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![By Mike Dean, Managing Director of WhisperClaims](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/mike-dean-450x449-1736813934947-compressed.jpg)

_By_ **_Mike Dean,_** _Managing Director of_ _WhisperClaims_

There has been a great deal of change in R&D tax legislation recently, and this has brought with it lively discussions in the industry, with some R&D tax advisors becoming worried about HMRC’s more stringent scrutiny of claims and anti-fraud measures. Despite this, however, there is an opportunity for these changes to become a catalyst for positive change in the industry, increasing levels of accountability and raising the benchmark of quality for R&D tax claims.

With some advisors choosing to [exit the market](https://www.financedigest.com/analysis-oil-prices-turn-more-volatile-as-investors-exit-the-market.html "Analysis-Oil prices turn more volatile as investors exit the market"), opportunities are now appearing for accountants to double down and expand their services and offer more comprehensive client support. Mike Dean, Managing Director of WhisperClaims, offers his thoughts on how accountants can remain focused on providing a high-quality service for their clients, irrespective of the [turbulence in the industry](https://www.financedigest.com/the-industrial-hemp-market-to-sail-through-innovation-based-turbulence.html "The Industrial Hemp Market To Sail Through Innovation-Based Turbulence").

## **Battling the Turbulence**

However inconvenient, it is worthwhile recognising that the increased scrutiny from HMRC is necessary to curtail the rise of spurious [claims in the 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") sector in recent years. While a few rogue advisors have pushed the boundaries of the scheme, failed to provide transparency, and given the market a bad name, most accountants recognise the importance of [providing a genuine and compliant](https://www.financedigest.com/fixmart-provides-vitaladvice-to-keep-customers-compliant.html "Fixmart Provides VitalAdvice To Keep Customers Compliant") R&D tax service to eligible businesses.

Instead of [becoming fearful of providing R&D tax](https://www.financedigest.com/becoming-data-ready-for-mtd-for-corporation-tax-aligning-vat-and-ct.html "Becoming data-ready for MTD for Corporation Tax: aligning VAT and CT") services, it is now more important than ever to offer this valuable financial resource to clients who genuinely deserve access to it. Some R&D tax specialists are pulling out of the SME market as a result of a reduction in tax [rates](https://www.financedigest.com/factbox-the-uks-top-tax-rate-what-is-it-and-why-does-it-matter.html "Factbox-The UK’s top tax rate – what is it and why does it matter?") and HMRC’s increasing efforts to combat fraud, leaving some clients to turn to their accountants for support instead. This represents a potentially lucrative opportunity for accountants to embrace this new revenue stream, and offer a [dedicated in-house service](https://www.financedigest.com/investec-wealth-investment-launches-dedicated-structured-product-service.html "Investec Wealth & Investment Launches Dedicated Structured Product Service") that incorporates R&D tax advice.

While the escalation in HMRC activity can be disruptive and unsettling, it shouldn’t be enough to convince accountants to stop [providing this service](https://www.financedigest.com/cm-takes-over-german-text-message-service-providers-smskaufen-and-innosend.html "CM takes over German text message service providers SMSKaufen and Innosend") to clients. Accountants can maintain and bolster their existing relationships with clients and attract new business by continuing to offer an R&D tax service, and at the same time ensure that they are genuine clients with valid claims.

## **Staying Ahead of the Competition**

[Building the essential](https://www.financedigest.com/why-building-new-products-for-a-circular-economy-is-essential-if-we-are-to-preserve-the-earths-finite-resources.html "Why building new products for a circular economy is essential if we are to preserve the Earth’s finite resources") abilities is just the first step in providing a comprehensive client service that incorporates R&D tax. In order to guarantee that claims continually satisfy HMRC’s criteria, accountants must also [develop a solution](https://www.financedigest.com/soprasteria-partners-with-wallet-services-to-develop-innovative-blockchain-solution.html "SopraSteria Partners with Wallet.Services to Develop Innovative Blockchain Solution") that is reliable, economical, and, most importantly, rigorous.

The creation and implementation of reliable [systems for client screening and risk-assessing claims](https://www.financedigest.com/meta-denies-kazakh-claim-of-exclusive-access-to-facebooks-content-reporting-system.html "Meta denies Kazakh claim of exclusive access to Facebook’s content reporting system"), as well as building a solid understanding of HMRC’s shifting guidelines, are important components of this. Accountants can prove their dedication to providing a comprehensive range of advisory [services by quickly and accurately determining a client’s](https://www.financedigest.com/id-finances-chatbot-cuts-client-services-workload-by-a-third.html "ID Finance’s chatbot cuts client services workload by a third") eligibility. In addition, they may identify hot clients to pursue and prevent potential disappointment with work that is unlikely to qualify for [tax relief](https://www.financedigest.com/what-is-inheritance-tax-share-loss-relief.html "What is inheritance tax share loss relief?").

The introduction of the new Additional Information form, alongside HMRC’s other recent changes to the scheme, has added further complexity to the tax claims process, and increased [delivery costs](https://www.financedigest.com/amazon-offers-shoppers-10-to-pick-up-purchases-as-it-targets-delivery-costs.html "Amazon offers shoppers to pick up purchases as it targets delivery costs"). Transitioning to a more structured, software-based process [mitigates the risk](https://www.financedigest.com/oxial-and-the-university-of-applied-sciences-western-switzerland-hes-so-team-up-to-mitigate-human-risk-in-financial-services.html "OXIAL and the University of Applied Sciences Western Switzerland (Hes-so) team up to mitigate human risk in financial services") of errors, streamlines the claims process and creates a scalable model that can meet increasing client demand. Automating the claims process also eliminates the most time-consuming parts of the process, freeing up accountants to work more efficiently with clients to fully comprehend the breadth and [importance of any R&D activity](https://www.financedigest.com/tissue-cultured-date-palm-market-pegged-at-us-4-5-bn-value-pool-in-2027-import-export-activities-take-a-downturn-amid-coronavirus-outbreak-future-market-insights.html "Tissue Cultured Date Palm Market Pegged at US$ 4.5 Bn Value Pool in 2027; Import & Export Activities Take a Downturn Amid Coronavirus Outbreak: Future Market Insights").

## **Supporting Your Claims**

However, it is not imperative for accountants to develop these tools internally. [In order to prepare and validate claims, using an end-to-end R&D tax software](https://www.financedigest.com/rd-tax-important-exemptions-and-upcoming-changes-for-the-it-software-industry.html) solution supported by expert services helps accountants keep pace with the newest criteria. It also provides a structure for evaluating the validity of claims and working with [clients to collect all necessary data](https://www.financedigest.com/is-your-client-data-fully-secure-magazine.html "Is your client data fully secure?-Magazine"). Such a service should also offer access to peer communities that can foster understanding and confidence as well as an expert-led advice line that offers additional support. Even experienced R&D tax [service providers can benefit](https://www.financedigest.com/synapse-makes-it-even-easier-for-time-poor-fds-to-benefit-from-cloud-cfo-with-new-managed-service.html "Synapse makes it even easier for time-poor FDs to benefit from Cloud CFO with new managed service") from this support, ensuring that claims remain compliant within an ever-changing HMRC environment and helping reduce the risk of nudge letters and enquiries.

If HMRC does open an enquiry, an end-to-end R&D tax [software solution](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-immunohematology-market.html "Healthcare Software Solutions to ride the Immunohematology Market") with an “Enquiry Support Service” could offer an additional layer of support. Such a solution would guarantee the [accountant knows](https://www.financedigest.com/how-to-get-started-on-a-career-in-accounting-and-how-to-know-if-its-right-for-you.html "How to Get Started on a Career in Accounting (and How to Know if It’s Right for You)") how to best reply to HMRC in addition to building the confidence to dispute a claim and minimising the time-consuming element of the full enquiry process.

## **Conclusion**

Although HMRC’s stricter [approach to R&D tax](https://www.financedigest.com/buy-to-let-makes-way-for-buy-to-net-as-april-tax-changes-approach.html "Buy-to-let makes way for buy-to-NET as April tax changes approach") relief is likely to persist, it is expected that the current level of HMRC action will decrease over the next six months and return to a more stable level. There won’t be as many nudge letters or claims being contested. This will be due in part to the worst offenders backing away and the most dubious allegations being handled. However, the adoption by accountants of reliable, repeatable procedures based on [software and strong support would also raise the calibre](https://www.financedigest.com/calibration-management-software-market-to-witness-exponential-growth-by-2030-end-tmr-study.html "Calibration Management Software Market to Witness Exponential Growth by 2030 End | TMR Study") of the claims being submitted, lowering the likelihood that HMRC may raise a dispute.

Ultimately, R&D tax relief is still an important part of the overall R&D tax service. Given the current economic context, it still represents a sizable [tax benefit for clients](https://www.financedigest.com/pwc-australia-clients-staff-in-focus-as-tax-leak-faces-government-hearings.html "PwC Australia clients, staff in focus as tax leak faces government hearings"). [Innovative businesses that are engaging in legal R&D ought to have access](https://www.financedigest.com/the-npwt-suction-pads-market-to-grow-on-an-effective-and-accessible-note-backed-by-innovation.html "The Npwt Suction Pads Market to grow on an effective and accessible note backed by innovation") to the programme and benefit from it.

The changes shouldn’t be a barrier for accountants; in fact, the opposite should be true. It is a good thing that the R&D tax [industry has rid itself of the bad apples](https://www.financedigest.com/apple-seed-oil-market-2022-outlook-current-and-future-industry-landscape-analysis-2026.html "Apple Seed Oil Market 2022 Outlook, Current and Future Industry Landscape Analysis 2026"). It lowers the possibility that clients may receive poor advice and creates [space for the launch](https://www.financedigest.com/nasa-spacex-launch-4-more-astronauts-into-orbit-on-flight-to-space-station.html "NASA, SpaceX launch 4 more astronauts into orbit on flight to space station") or expansion of a full-service portfolio that satisfies client needs and boosts client engagement. The [key is to build understanding](https://www.financedigest.com/the-impact-of-economic-indicators-on-financial-markets-understanding-the-key-drivers.html "The Impact of Economic Indicators on Financial Markets: Understanding the Key Drivers"), confidence and a robust claims process model that allows the delivery of R&D tax claims in a repeatable, consistent and cost-effective manner.


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