The Best Way for Accountants to Add R&D Claims Without Taking on Risk

R&D tax relief can be one of the most valuable services you offer your clients and also one of the most dangerous.

If you’re an accountant thinking, “We want to help our clients with R&D, but we don’t want to get it wrong,” you’re not alone.

We speak to firms like yours every week: decent, diligent practices who want to stay in their lane, avoid regulatory risk and protect the client relationship, but who also hate seeing opportunity walk out the door.

This blog is for you if:

  • You’re considering offering R&D claims in-house but are worried about the compliance aspect.
  • You’ve done the odd R&D claim, but it felt difficult or you were unsure about the process.
  • You’re looking for outsourcing options, without risking your reputation.

I’ll walk you through all the options: doing it in-house, outsourcing, referring and even building your own team later on.

I’ll also show you how accountants like you are adding R&D claims safely and profitably without losing control of their clients.

This article is written with the Professional Conduct in Relation to Taxation (PCRT) in mind - the ethical framework developed by CIOT, ICAEW, ACCA and others. Before offering or referring R&D services, review your engagement scope, competence and documentation practices.

What Are the Risks for Accountants Adding R&D Tax Claims?

Let’s start by discussing the elephant in the room: HMRC is still cracking down on R&D tax claims. The days of low effort and low scrutiny R&D claims are behind us.

Accountants now face real consequences if a claim is challenged, even if they didn’t prepare it directly.

That’s because your clients see you as their trusted advisor.

HMRC now challenges around 1 in 5 R&D claims. An enquiry in itself shouldn’t destroy trust. The real risk is how the enquiry is handled:

  • Are your clients getting fast, clear updates?
  • Do they understand what happens next during an Enquiry?
  • Is the claim being properly defended?
  • Are penalties and clawbacks being proactively mitigated?

If an enquiry drags on, goes silent or ends with a surprise penalty, you could take some of the heat.

The biggest risks we see:

  • Client relationship damage
    If a claim fails or triggers an enquiry, even if outsourced, you can lose a client’s trust based on how the Enquiry is dealt with.
  • Reputational risk
    If your firm’s name is associated with dodgy claims or questionable providers, that stain sticks.
  • PI exposure
    Even if R&D work falls outside your engagement letter, if you referred the provider or were involved in the process, you may still be drawn into disputes or complaints, even if you're not legally liable.
    While the actual risk of being held responsible is low, your client may still blame you and your PI insurer may require you to demonstrate due diligence in making the referral.

Why Most Accountants Aren’t Set Up to Handle R&D Claims Internally

On the surface, it looks like something your tax team could pick up. In practice, R&D tax is different from other tax work, so the work won’t come naturally to your tax team.

Handling R&D claims properly requires:

  • A deep understanding of technical eligibility (it’s not just about the numbers)
  • Industry-specific experience (not just tax knowledge)
  • The ability to defend claims during HMRC enquiries, which are now more common

We’ve even seen larger firms with strong tax teams often underestimate the time, documentation and expertise needed.

That’s why we see so many:

  • Underclaimed opportunities - the client misses out on tax savings
  • Overclaimed and exposed submissions - the client predominantly takes the risk of “failing” an HMRC Enquiry and repaying tax savings and paying penalties

What Options Do Accountants Have for Offering R&D Claims?

There are three ways to go:

  1. Do it yourself in house
  2. Outsource to a white-label provider
  3. Refer to a specialist

Do It Yourself (In-House)

This might seem like the most straightforward option, as you already know your client, you have their records and you’ve probably read a few HMRC manuals or attended a webinar.

However, in reality, attempting to deliver R&D claims internally without a specialist is risky, time consuming and expensive.

Here’s why:

R&D claims are technically complex

You need to assess not just the financials, but whether the underlying work meets HMRC’s definition of R&D. This often involves understanding engineering, software development or scientific principles, areas most accountants aren’t trained to evaluate.

You’re held to professional standards

If you're a member of a professional body (like ICAEW, ACCA, CIOT), you're bound by PCRT (Professional Conduct in Relation to Taxation). That means you’re expected to have:

  • Sufficient competence to do the work
  • A clear understanding of the tax law and guidance
  • A defensible basis for any claims submitted to HMRC

If you or your team are not R&D specialists, there's a real risk that you could unintentionally breach these obligations by:

  • Submitting a weak or ineligible claim
  • Relying too heavily on client-provided assumptions

  • Failing to document or justify the claim adequately

    PCRT Reminder: "A member must not undertake professional work which they are not competent to perform unless they obtain appropriate assistance from a suitably qualified specialist.”

You carry the liability

If a claim is rejected or challenged and it was submitted with your name on the Additional Information Form, you’re risking damage, not just reputationally, but potentially financially. That includes paying financial penalties and settling legal disputes with clients (direct to via professional indemnity insurance).

It eats your time

Even with a straightforward R&D claim, the interviews, technical write-ups, documentation and back and forth with clients will use a lot of your time. Each HMRC Enquiry into a claim could make it loss-making.

Here is an example of what can go wrong when you try to prepare an R&D claim without experience.

HMRC opened an Enquiry into a large multinational bioanalytical company's £1.2mn R&D claim. The accountant had prepared the R&D claim. HMRC was right to open an Enquiry as the company had overclaimed approximately £500,000.

We were introduced to the client by the accountant and we highlighted the overclaim to HMRC. After plenty of back and forth with HMRC and the client, the result was that the company received a £700k tax saving, without any penalties.

Unless you’re a large firm with a dedicated technical team or willing to invest heavily in one, doing R&D claims in-house tends to create more risk than reward.

If you want to start your own R&D team in your accountancy firm, I will cover this later.

Outsource to a White-Label Provider

This model keeps you as the “face” of the R&D claim. You introduce the service to your client, the technical work is delivered behind the scenes by a third party and the reports are submitted under your firm’s name. The client believes the work is undertaken by your firm.

It's a great option as you get the recognition and potentially some revenue and someone else does the heavy lifting.

There are three major caveats you need to be clear on before choosing this route:

You still carry the risk, not the provider

If your name is on the AIF, you're responsible for its quality, eligibility and compliance. If HMRC opens an enquiry, they won’t be chasing the white-label provider. They’ll be coming to you.

That means:

  • You must be confident that the provider is technically competent
  • Their processes must comply with current HMRC guidance
  • Their documentation must stand up to scrutiny, ideally without needing your intervention

And if they mess it up? You still own the fallout, reputationally, professionally and potentially financially.

You may breach professional obligations without knowing it

If you’re part of a professional body (like ICAEW or ACCA), remember your PCRT duties still apply.

You're expected to:

  • Understand and review the claim before submission
  • Be able to explain the basis of the claim if asked

  • Avoid involvement in claims you aren’t competent to review
    White-labelling doesn’t remove these obligations. Even when referring or outsourcing, keep notes on your role, decision-making and any advice given.

    Unless you thoroughly review the work (which defeats the purpose), you could be signing off on something you don’t understand or that doesn’t meet professional standards.

You lose visibility, which puts your client relationship at risk

In most white-label setups, you’re not in the room. The provider speaks to your client, gathers technical details, writes the reports, but you may not know what’s said, promised or documented until it’s done. This is dangerous if you don’t understand R&D tax relief.

This can lead to:

  • Misaligned messaging between you, your client and the R&D tax provider
  • Missed commercial or advisory opportunities
  • Reduced trust if your client feels like you’re not in control

And if something goes wrong, your client holds you responsible, not the faceless third-party brand.

In short, white-labelling can work if:

  • You trust the provider completely
  • You actively quality-check their work
  • You’re comfortable accepting the compliance responsibility

Refer to a Specialist (with involvement and visibility)

For most firms, this is the safest, cleanest and most scalable way to offer R&D claims.

You introduce your client to a trusted R&D partner who delivers the claim under their own brand, while keeping you in the loop. You’re involved in the relationship, but not responsible for technical delivery or compliance risk.

It’s the best of both worlds:

  • You help your client unlock real value
  • You stay in control of the relationship
  • You avoid the stress, liability, and delivery work
  • You may earn a referral fee

Here’s why this approach works so well:

You maintain trust and control

This reinforces your position as their trusted advisor, someone who knows when to bring in specialists without pretending to be one.

You remove delivery and compliance risk

The work is done and signed off by the R&D specialist under their brand, with their PI insurance, you’re no longer exposed to:

  • Enquiry defence
  • Technical eligibility assessments
  • Report writing or form submission
  • HMRC disputes

The specialist owns the claim. You’ve made a referral, not assumed delivery. That makes all the difference if anything is challenged later.

You generate recurring, low-effort revenue

Most R&D tax firms provide a referral fee to the accountant for the introduction of clients.

It’s a win for everyone:

  • Your client receives specialist support
  • You strengthen your advisory role
  • You gain new income, without new workload or headcount

In line with PCRT, you should disclose any referral fees or commissions to your client, including how they are calculated.

What’s the Safest and Most Compliant Way to Offer R&D Claims to Clients?

It depends on what you want to achieve. If you want to offer R&D without exposing your firm, here's what matters most:

  • Clarity: Be clear with your client on who is doing the work and where the responsibility lies.
  • Transparency: Choose a partner who will involve you in the process, not one who ghosts you after the intro.
  • Documentation: Make sure claims include proper technical reports and financial justification.
  • HMRC Readiness: Pick a provider who can (and will) defend claims if challenged.

What If I Want to Build My Own R&D Team Eventually?

This is a great goal and totally doable, if you have the money to support it. But here’s what many firms don’t realise:

You can start by outsourcing the delivery, learn as you go, generate revenue and bring it in-house when you’ve built a sustainable revenue base.

Building a proper R&D team means:

  • Hiring someone with both technical and tax expertise
  • Giving them time to get up to speed with your firm’s clients and workflows
  • Paying a competitive salary (often £60k+ for experienced professionals)
  • Being prepared to invest in ongoing compliance training and handling HMRC enquiries
  • Bringing in sufficient work to keep the delivery team busy.

This is expensive for just a few claims a year. But if you’re seeing demand grow, outsourcing is a great bridge.

For an accountancy firm looking to start an R&D tax function, I recommend first figuring out how to bring regular good quality clients on a monthly basis. Once you crack this, then you can start building an in-house delivery team, develop your processes and invest in infrastructure to help deliver the work better.

Will I Lose Control of My Client If I Introduce an R&D Partner?

This is the biggest fear and honestly, it’s fair.

We’ve all heard stories of providers who:

  • Start cross-selling other services
  • Try to poach the client
  • Leave the accountant out of the loop

That’s why choosing the right partner matters. A trustworthy approach should include:

  • A clear non-compete and non-solicitation agreement
  • Updates before and after key meetings
  • No cross-selling

How Much Can Accountants Earn by Partnering on R&D Claims?

It can vary depending on how much the R&D firm charges and the agreed referral agreement.

Let’s say, on a fee of £15,000, with a 10% referral fee, the accountant can generate £1,500, without lifting a finger on delivery. I have seen R&D tax firms’ referral fees ranging from 5% to 30%.

Example:

  • You refer 4 clients a year
  • Average claim fee: £15,000
  • Your referral income: £6,000 per year

In my opinion, the referral fee shouldn’t be a decision-maker in partnering with a firm. It’s a bonus and helps cover some of the time costs associated with helping the R&D firm prepare the R&D claim.

We’ve seen some firms reduce or remove referral fees due to increased compliance costs following HMRC’s 2023 changes.

How to Choose the Right R&D Tax Partner (and Red Flags to Avoid)

Not all R&D providers are created equal. Here’s what to look for:

✅ Proven track record with HMRC enquiries
✅ Transparent process that includes you
✅ No aggressive or exaggerated eligibility promises
✅ Technical and tax knowledge (not just sales scripts)
✅ PI insurance and solid client agreements

And what to avoid:
🚩 Cold outreach with “guaranteed” refunds
🚩 Vague or pushy sales tactics
🚩 Lack of clarity about who does the technical work
🚩 No option for joint client communication

Why R&D Claims Are Under More Scrutiny Than Ever - And What It Means for Accountants

In 2023 and 2024, HMRC has:

  • Increased the number of R&D enquiries significantly
  • Introduced more pre-claim checks and digital forms
  • Focused on R&D claim firms, not just clients

This has spooked many providers. Some have exited the sector. Reputable firms are doubling down with better compliance.

For accountants, it means you can’t just “try R&D and see what happens.” You need to either know it inside out or partner with someone who does.

Final Thoughts: If You Want to Help, But Not Gamble, This Is the Best Way Forward

You want to help your clients claim what they’re entitled to. But you also want to:

  • Protect your firm
  • Stay compliant
  • Keep control of the relationship

If you have no expertise in R&D tax, the safest, most scalable way is to partner with a trusted R&D provider who:

  • Let’s you stay involved
  • Handles all delivery and compliance
  • Keeps your client happy

This article provides general guidance only. Each firm must consider their own professional obligations and PCRT compliance when offering or referring R&D services. For legal or regulatory advice, consult your professional body or compliance adviser.