Why the Right R&D Partner Isn't the One Who Says Yes

I could have built PSS Tax to say yes to everything. More yeses mean more claims, more fees and more growth. It isn't a conspiracy. It's just incentives doing what incentives do.

I built it to do the opposite instead.

Not out of some noble allergy to revenue. This is a business, and it needs to make money like any other. But I've spent enough time in this industry to know that the firms doing the most damage to R&D Tax Relief's reputation, and to the accountants who referred the work, weren't the ones getting it wrong on purpose. They were the ones who'd quietly optimised for yes.

So before I tell you what I do, it's worth telling you what I don't do. I don't try to make projects fit the legislation or tell clients what they want to hear. I assess the facts, apply the legislation and reach the conclusion the evidence supports, even when that conclusion is no.

What an R&D Tax Relief Claim Actually Requires

One of the biggest misconceptions I still see is that R&D Tax Relief is primarily a tax exercise. It isn't. It's a technical exercise that happens to result in a tax claim.

The corporation tax treatment, qualifying expenditure and calculations are all important, but they're only one part of the process. Before you can determine what qualifies, you first have to establish whether the underlying work qualifies in the first place.

That's where R&D has changed significantly.

Today's claims are built around the legislation and the supporting guidance, not commercial outcomes. The question is no longer “did the company develop something new?” or even “did they innovate?” Businesses innovate every day. Most of it isn't R&D for tax purposes.

The real question is whether competent professionals were attempting to resolve scientific or technological uncertainties that could not readily be overcome using existing knowledge or established techniques. If they were, can that be evidenced? Can it be explained? And does the qualifying expenditure genuinely relate to those qualifying activities?

Those aren't purely tax questions. They're technical, legislative and evidential questions that require an understanding of how software developers develop software, how engineers solve engineering problems, how manufacturers overcome production challenges, or how construction professionals resolve complex technical constraints.

That's why many accountants choose not to undertake R&D claims themselves anymore. Not because they don't understand tax, but because they recognise that modern R&D Tax Relief demands specialist technical expertise alongside tax knowledge.

The standard expected of an R&D claim today is significantly higher than it was even a few years ago.

Legislative reforms have altered how parts of the relief operate, while additional compliance requirements have increased the amount of information businesses need to provide at the point of submission. At the same time, HMRC's approach to enquiries, together with developing case law and greater scrutiny of technical narratives and supporting evidence, has fundamentally changed what a robust claim looks like in practice.

It's no longer enough to identify qualifying costs and produce a well written report. A compliant claim needs to demonstrate that the legislative tests have been met, that the technical narrative is supported by evidence, and that the expenditure claimed can be directly linked to qualifying activities.

That's why the question has shifted from “does my client undertake innovative work?” to “can we confidently demonstrate that this claim meets the legislative requirements?” Those are two very different questions.

How We Approach Every Claim

At PSS, we've built our process around one simple principle: establish eligibility before you ever think about preparing a claim.

That means understanding the client's projects, assessing them against the legislative requirements and being prepared to conclude that the answer is no if the evidence doesn't support a claim. We'd much rather have that conversation at the outset than see a client facing unnecessary HMRC scrutiny months or years later.

Where a project does qualify, our technical and financial teams work together from the beginning. The technical narrative, the qualifying activities and the expenditure all need to align, because a compliant claim isn't just a calculation and it isn't just a report. It's both, working together, supported by evidence.

That process draws on expertise from across our business. Our consultants work with companies operating in software, engineering, manufacturing, construction and many other sectors, translating highly technical work into clear, accurate reports that remain faithful to what actually happened rather than simply what sounds persuasive.

Just as importantly, our involvement doesn't end once a claim is submitted. Legislation evolves, HMRC's approach continues to develop and, occasionally, claims are selected for enquiry. We continue to support our clients and our accountant partners throughout that process, because standing behind our work shouldn't stop on submission day. Whether that means supporting a routine compliance check, responding to a formal HMRC enquiry or simply advising on future claims, we remain alongside our accountant partners and their clients long after submission.

Behind all of that is a structured process involving technical assessment, evidence gathering, financial review, quality assurance and ongoing support. It's not the most exciting part of R&D Tax Relief, but it's often the difference between a claim that's simply submitted and one that's genuinely robust.

Why This Matters to You

Here's the part that's easy to forget from outside the relationship. When your client's claim comes under HMRC scrutiny, it isn't just our name attached to it. It's yours. You made the introduction. You placed your trust in us, and in doing so, your client placed a little more trust in you.

I don't take that lightly, because it isn't just your client's claim that's being tested. It's the confidence they've placed in your advice and your decision to recommend us.

That's why we're not here to replace your relationship with your client, and certainly not to take them away. We understand and respect the trusted relationships that people and businesses build with their accountants over many years, and one of our core objectives is to strengthen that trust, not undermine it.

We're here to become your trusted R&D compliance partner, providing the specialist technical, legislative, financial and compliance expertise that sits alongside the tax and accountancy advice you already deliver. In the same way you might bring in a VAT specialist or employment tax adviser for a particular area of expertise, we're here to support you where R&D requires a deeper level of knowledge and experience.

Our team operates across our offices in London, Manchester and Hampshire, supporting accountants and businesses throughout the UK. Whilst R&D Tax Relief remains our core specialism, our wider expertise, trusted partner network and complementary services also allow us to support accountants and their clients across a broader range of innovation, tax and business advisory matters whenever additional specialist input is needed.

If you've got a client you believe may qualify, or perhaps one where you're simply not quite sure, I'd much rather have that conversation before anything is submitted than after HMRC starts asking questions.

If you're confident they qualify, we'll happily sense-check your thinking.

If you're unsure, we'll help you reach the right conclusion.

And if the answer is no, we'll tell you that too.

Because protecting your client, your reputation and the integrity of every claim will always matter more to us than winning another instruction.