The audit and assessment industry has been under rigorous scrutiny in the past few years due to the increasing number of high-profile scandals and business failures such as those of Thomas Cook, BHS, Patisserie Valerie, Carillion and more. Following substantial public outcry over the possibility of assessors being complicit in such corporate failures, the Financial Reporting Council (FRC) UK decided to issue Revised Ethical Standards that will come into effect from 15 March 2021. This tightening of rules is expected to strengthen assessment independence by banning audit firms from providing advisory services to listed businesses and financial institutions. These radical new changes are also predicted to provide a major setback and cost millions of pounds to the Big Four firms: KPMG, PwC, EY and Deloitte.
What Do These Changes Mean for Accountancy Firms?
Accountancy firms will need to make several changes to the capacity in which they provide assessment services to their clients. The new rules mean these firms will also be prohibited from providing recruitment and remuneration services or influencing any management decisions. In other words, businesses will need to separate their non-assessment and assessment services, so that independent assessors can conduct much more robust and efficient assessments. From 15 March 2021, accountancy firms will no longer be able to provide assessment services to their clients and may need to re-direct them to dedicated assessment firms for any internal or specific tax-related assessments, including R & D tax credit claim assessment. Failure to do so may not only cost them the client and but also reduce the possibility of any future recommendations from them.
How Can Datafox Help?
Datafox is an R & D tax credit specialist that has helped businesses across various industries make successful claims and helped recover amounts ranging from £50,000 to £950,000 in R & D tax credits. Our award-winning team of experts has processed hundreds of claims, which were approved in the very first attempt and in full by the HMRC. Datafox can extend their R & D tax credit claim assessment services to accountancy firms that have clients who wish to review their claim and explore any opportunity to receive better pay-out for their innovation. Our assessment involves a senior member of our team going back through your clients’ accounts for the last 2 years and looking at every item of expenditure and income in the P&L which relates to R & D. Our review board will then perform a final check to make sure that what we are claiming for additionally is correct and that nothing further can be been added or has been missed. We then submit a secondary/supplementary claim to HMRC and either get back a further corporation tax rebate for your client or a cash payment if the company is not in profit.
There are several benefits of choosing Datafox for R & D tax claim assessment. Accountancy firms that partner with us can still continue to provide other tax accounting and non-assessment services to their clients, without worrying about competition, as we are a specialist research and development tax credit firm that is only dedicated to providing expertise in R & D tax credit claims. This way, accountancy firms will be able to retain their clients for non-assessment services and guide them correctly in case of any R & D tax claim assessment, through us.
Datafox will be happy to help accounting firms, both big and small, in processing any research and development tax claim assessment after 15 March 2021. For more details about our R & D tax credit claim and assessment process, please get in touch with our team.