Know the fee. Understand the risk. Ask the right questions.
A plain-English guide to how R&D tax advisers are paid, and what to check before you sign.
Fees, in plain English
How advisers are paid, the questions to ask and the warning signs to look for. Everything here is about the fee and the risk, so you can compare proposals on the same terms.
Contracts
Most of the risk is in the fine print
The fee clause is only part of it. Read what the engagement letter says about review, enquiries and ending the agreement.
How to read an engagement letterFour clauses to read
- §FeesHow it’s worked out, and any cap
- §ReviewWhen you see the claim
- §EnquiriesWhat audit support covers
- §Ending the agreementHow you can leave, and what you owe
If a claim is reduced, who pays?
Usually the business. The claim is made in its name, so it repays the credit and carries any interest, and usually any penalties, however the adviser was paid.
Audit support is help with a review. Who pays any tax, interest or penalties is a separate question.
An R&D tax credit claim is made in the business’s name. If the tax authority later reduces it, the business usually repays the credit, along with any interest and penalties that apply.
A proposal may offer audit support. In an engagement letter that means help: preparing documents, answering questions, attending meetings. Whether the adviser pays any tax, and whether any part of the fee comes back, depends on what the letter says.
Where are you right now?
Three starting points, depending on how far along you are. Each one leads to the guides, questions and checks that fit.
I’m choosing an adviser
What to ask, and what a fair proposal looks like.
Starts with20 questions to askStart hereI’m reviewing a proposal
Check the fee, the cap and who carries the risk.
Starts withFive-minute fee testRun the fee testI’m unhappy with my adviser
Your options, and the questions to raise first.
Starts withYour engagement letterSee your options
Who publishes this site
This guide is published by Swanson Reed, an R&D tax adviser that competes with other advisers. We think businesses should understand fees before they sign. We don’t recommend any adviser, including ourselves.
Conflicts of interestUpdates by email
Occasional updates when guidance changes.