Reference check guide

Ask the adviser for two or three references of similar size to your business, including at least one whose claim was reviewed by the tax authority. Ask whether you may put any question to them. References chosen by the adviser tell you less than a conversation you lead. The point of the call is the detail, not the verdict: what the engagement was, how it was priced, and what happened when something was tested. Find a reference of your own as well if you can, through your accountant or a business like yours.

Allow fifteen minutes, take notes, and ask the same questions of every reference so the answers can be compared. The can we speak to references? page explains why this question is on the list of twenty.

1. What did the adviser do for you? The whole claim, the technical case only, or a review of your own draft. The answer tells you whether the engagement was like the one you are considering.
2. How was the fee worked out? A percentage of what, a fixed amount, a cap, hourly work on top. Could you work out the fee from the engagement letter alone? (How are your fees calculated?)
3. Did the fee turn out as the proposal said? Were there extras, and were they priced before the work started?
4. Did you see the full claim and its workings before it was filed? Did the people who did the technical work read the descriptions? (Can we see the full claim before filing?)
5. Who did the work? The people named in the proposal, or others. Did anyone talk to your engineers or scientists?
6. Was the claim reviewed by the tax authority? If so, what help did the adviser give, was it in the price, and how did it end? If the claim was reduced, did the fee come down too? (What happens to the fee if the claim is reduced?)
7. What happened at the end of the engagement, or at renewal? Did the contract renew by itself, were there exit fees, and did you get your records back without charge? (What happens if we end the engagement?)
8. Was anyone paid for introducing you? Did the adviser tell you, and in writing? (Do you pay or receive referral fees?)
9. Would you sign again, on the same terms? If not, what would you change?
10. Is there anything you wish you had asked before you signed?

A reference tells you what happened to one business, in one year, with one claim. It does not prove that the adviser's process works, that your claim will be accepted, or that the fee will suit you. A reference whose claim has never been reviewed cannot tell you how the adviser behaves when the claim is tested, which is why at least one reviewed claim matters. A reference with a financial relationship with the adviser, such as a referral arrangement, is a reason to ask more questions, not a reason to stop.

Treat what you hear as one input beside the engagement letter, the worked example and the written answers to the twenty questions. The letter is what you will live with.

Write up the answers the same day and keep them with the proposal. If a reference contradicts something in the proposal, ask the adviser about it in writing before you sign. If two references describe the same problem, that is a question for the adviser and, if the answer does not satisfy you, a reason to look further. Neither is a verdict on the firm; both are reasons to ask more questions.

• Can we speak to references? and named people with qualifications you can check
• How to run a request for proposals
• Questions checklist