How to choose a trusted R&D tax advisor: a practical guide for UK businesses

Many providers now advertise extremely low fees or quick turnaround services. This can seem appealing, particularly for SMEs. Yet cheap R&D advice often comes with hidden risks. Incorrectly prepared claims can lead to delays, enquiries, the need to repay relief, penalties and, in some cases, reputational damage. A trusted advisor does far more than fill out paperwork. They help you understand the rules, identify genuine qualifying work and present your claim in a way that aligns with government guidance and the underlying legislation.

This guide brings together the key considerations when choosing an R&D advisor and explains what good advice looks like in practice.

Why choosing the cheapest advisor often costs more in the long run

The R&D tax market has grown rapidly in recent years. At the same time, HMRC has tightened its compliance activity. This has created a gap between providers who invest in technical quality and those who rely on high volumes, low pricing and templated claims.

Cheap services often cut corners in areas that matter, including:

1. Limited technical involvement

R&D claims require a clear understanding of science or technology, along with accurate financial analysis. Low cost advisors sometimes rely on questionnaires or generic templates rather than speaking to your technical team. This increases the risk of misunderstanding your projects or overstating eligibility.

2. Insufficient compliance safeguards

Some low cost firms are unregulated and may not follow AML or GDPR requirements. This creates risk for clients, particularly during HMRC reviews.

3. Weak or inaccurate documentation

Poor quality narratives, missing evidence and incomplete calculations are common reasons for HMRC enquiries. These enquiries can delay tax repayments and increase the likelihood of reductions or penalties.

4. Limited support if HMRC raises questions

Not all advisors offer enquiry support within their standard fee. Others may not have the expertise to defend their own work. This leaves businesses exposed at the point where robust representation is most important.

Responsible advisors work within the rules and prepare claims that stand up to scrutiny. Their pricing reflects the time, skill and due diligence required to do this properly.

Understanding R&D tax relief and why specialist advice matters

R&D tax relief is available to most UK limited companies that spend money on qualifying research and development. Relief is claimed through a company’s corporation tax return and must follow the guidance and definitions set out in legislation.

Although the merged R&D Expenditure Credit scheme has simplified some elements of the process, the rules remain technical. Claimants must:

• identify qualifying projects according to HMRC’s definition of scientific or technological advancement
• evidence the work that took place and the uncertainties involved
• map costs accurately to eligible activities
• apply the correct scheme rules
• submit detailed supporting documentation

The complexity of these steps is why specialist advice adds value. A good advisor improves accuracy and efficiency, protects you from compliance risk and helps ensure you claim what you are entitled to.

What you should expect from a reputable R&D advisor

Below are the essential standards that any credible R&D advisor should meet. These criteria help you assess whether you are working with a partner who can genuinely support your business.

1. Technical expertise in tax and legislation

Your advisor should have deep knowledge of tax rules and how they apply in practice. Look for advisors with recognised tax qualifications such as CTA, ACA or ATT. This indicates a level of training and accountability that protects clients.

2. Strong industry understanding

A high quality advisor combines tax expertise with sector insight. Whether you operate in software, manufacturing, engineering or life sciences, they should understand the technical context well enough to identify where qualifying R&D is taking place.

3. Specialist credentials

Look for teams that include sector specialists, engineers, scientists or PhD level experts. R&D claims rely on demonstrating technical uncertainty, so expertise in your field is essential.

4. A clear commitment to training and compliance

R&D legislation evolves regularly, and HMRC continues to refine its compliance approach. Your advisor should invest in continuous training and remain up to date with both legislation and published guidance such as HMRC’s Guidance for Compliance (GfC3).

5. A thorough discovery process

A reputable adviseor takes time to understand your business. They will speak to your technical staff, visit your site where appropriate and ask detailed questions about the work. They will not rely solely on forms or generic questionnaires.

6. High quality technical documentation

The advisor should prepare your project narratives and financial analysis. These documents should clearly explain how your work aligns with HMRC’s definition of R&D and how costs have been mapped. You should not be expected to write your own technical report.

7. Transparent and fair fees

Fees vary across the market. Some advisors charge a percentage of the benefit achieved, while others charge fixed fees or blended models. What matters is transparency and a clear understanding of what is included. If a fee seems very low, ask what is being omitted and how the advisor will support you if HMRC raises questions.

8. A robust quality assurance process

Good advisors complete internal reviews before submission. They check that evidence is sufficient, terminology is correct and the claim reflects all relevant rules.

9. Clear communication and responsiveness

You should feel informed and supported throughout the process. Complex topics should be explained in accessible language that helps you make decisions confidently.

10. Ongoing support, including HMRC enquiry assistance

Enquiries can happen even when claims are correct. Your advisor should support you through the process, explain HMRC’s questions and help you respond with clarity and evidence.

How a trusted advisor adds value beyond the claim

High quality R&D advisors look beyond the immediate claim to create long term value.

Improved accuracy and fewer errors

Investing time upfront reduces the risk of HMRC enquiries and helps ensure the claim is defensible.

Greater efficiency for your team

structured process minimises time demands on your staff and avoids repeated requests for information.

Better identification of qualifying work

Experienced advisors often uncover eligible activities that internal teams overlook.

Support when legislation changes

The R&D landscape evolves quickly. Proactive advisors keep clients informed and help adjust processes to stay compliant.

Confidence in every submission

A well evidenced claim backed by specialist insight helps protect your business and gives you confidence in the outcome.

Putting it into practice: what good client service looks like

A high quality advisory relationship is collaborative. The advisor invests time in understanding your goals, sector and technical challenges. They work alongside finance and technical teams to gather evidence, prepare documentation and answer questions from HMRC if needed.

Their approach is defined by clarity, accuracy and integrity. They communicate openly, explain their reasoning and ensure you understand each stage of the process. They also seek ways to improve your record keeping so future claims are smoother and stronger.

These are the hallmarks of a responsible R&D advisor. They are also the standards we follow at Kene.

Final thoughts

Choosing an R&D advisor is a significant decision. The right partner strengthens your claim, protects your business and ensures you receive what you are entitled to. The wrong partner increases your risk and can cost far more than any fee saving.

By asking the right questions, assessing credentials carefully and looking for a commitment to quality, you can make a confident and informed decision.

If you would like impartial guidance on how to evaluate your current or prospective R&D advisor, we are here to help.