Fee types: how R&D tax advisers are paid

Fee types

How R&D tax advisers are paid. Nine fee models, each explained with the same worked example so you can compare proposals on the same terms.

Advisers who prepare research and development tax claims are paid in a small number of ways. Each one shifts the cost and the risk between you and the adviser differently. None of them is right for every business, and none of them is wrong on its own.

This section explains each model in plain terms: how the fee is worked out, who it can suit, what it does well, and what to watch. Every page uses the same illustrative claim and the same assumptions, so you can put two proposals side by side and see what changes. The figures are examples, not quotes, and actual fees vary.

The nine models

The pages below cover contingent success fees, percentage of refund fees, fixed fees, capped fees, hourly fees, hybrid fees, retainer plus success fees, deferred fees and software-assisted claims. Several are variations on two ideas: a fee that follows the benefit, and a fee that does not. The table below shows how each one is worked out and whether the fee rises with the claim.

How to use these pages

Start with the model in the proposal in front of you. Read how the fee is worked out, then try your own figures in the fee comparison calculator. If you are weighing two proposals, the comparison pages show every model on one claim.

Whatever the model, three questions matter most. What exactly is the fee based on? Is there a limit? And what happens to the fee if the claim is reduced after it is filed? The questions to ask section takes each one further.

Fee type	How it is worked out	Rises with the claim?
Contingent success fees	A percentage of the benefit	Yes
Percentage of refund fees	See the page	See the page
Fixed fees	An agreed amount	No
Capped fees	A percentage, up to a limit	Up to the cap
Hourly fees	Time at an hourly rate	With the hours
Hybrid fees	A fixed part plus a percentage	Partly
Retainer plus success fees	See the page	See the page
Deferred fees	See the page	See the page
Software-assisted claims	See the page	See the page

Scroll sideways to see the whole table.

General descriptions of each model. Figures on the fee type pages are illustrative.

KnowYourFees.org is published by Swanson Reed, an R&D tax advisory firm that competes with other advisers. This site does not recommend any adviser, including Swanson Reed.