Myths about R&D adviser fees

Myths

Five things people often believe about R&D adviser fees, what actually happens, and what to do instead.

Some beliefs about adviser fees are common enough to be worth answering one at a time. Each page here states the belief, explains what actually happens, and says what to do instead. None of them is about any particular firm. They are about how fee arrangements work in general.

If one of these matches something you have been told, read the page, then ask the questions it ends with. The questions to ask section has the full list, and the scripts give you the words.

No win, no fee means no riskNo win no fee means you pay nothing if the claim fails. It does not mean you carry no risk. The claim is in your name, and a reduced claim is repaid by you.
A bigger claim is a better claimA larger claim is not a better claim. The claim that survives a review is the one that counts, and a claim stretched to include doubtful work can cost more than it returns.
The adviser is responsible if it goes wrongIf a claim is reduced, the tax authority looks to the business that filed it, not to the adviser who prepared it. What the adviser owes you depends on the engagement letter, and it may be less than you expect.
Every adviser charges about the sameFees for the same claim can differ widely, in amount and in structure. The headline figure is only part of it. What the fee covers, and what happens if the claim changes, differ just as much.
You cannot negotiate the feeFee terms are proposals, not fixed prices. The structure, the cap, what is included and how you leave are all things you can ask to change before you sign.

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.