Why is Panoptic concentrating on R&D Tax Claims?

In September 2024; the R&D Tax Claims market remains unregulated and HMRC are currently clamping down very hard on fraud and error, and in particular on unscrupulous R&D advisors. This equates to a lot more enquiries and the approach from HMRC is hitting clients and accountants particularly hard, and in most cases of R&D Tax enquiries seen to date, the client and accountant that filed the claim are caught in a trap created by these less than innocent advisors.

This situation has created the opportunity for Panoptic to support clients and accountants, in conjunction with specialist tax defence firms, in a different way.

How did Panoptic arrive in tax defence work?

In early 2019, Panoptic became an authorised agent to Pinnacle Savings Ltd, a company specialising in compiling R&D Tax Claims directly to incorporated businesses. It’s director, took a prudent approach to making the claims which was in line with Panoptic’s independent and transparent philosophy. Panoptic and Pinnacle worked closely together, and this is when and where the scheme knowledge was learned by Panoptic.

In addition to other cashflow funding solutions Panoptic could help with, the R&D Tax Credit scheme generated additional cash and became popular with the clients and accountants known to Panoptic. The synergy was a match!

When Covid hit the UK in March 2020 the introduction of “easy money” through Bounce Back Loans and CBILS crippled the fee based consultancy model that Panoptic had developed over the previous ten years. Action had to be taken. Panoptic floated the idea to “join forces” with Pinnacle Savings Ltd to develop the R&D new claims services via accountants by education and introduction to clients, rather than cold calling and hard marketing.

In September 2020, Panoptic and Pinnacle set up Innovation Cashflow Services Ltd (iCS) and with Panoptic’s knowledge of growing businesses, finance and it’s accountant contacts, coupled with Pinnacle’s knowledge of the R&D Tax Scheme we set off to educate the accountants (openly and transparently) about the technical detail of the scheme, including all the potential risks to them and their clients that includes over claiming, claiming for non-qualifying activity, high continency fees charged and claim monies not been paid directly to the client. We highlighted potential exposure to time absorption and penalties to their clients in the future should an enquiry be started by HMRC.

By June 2023, Panoptic decided to sell its shares to Pinnacle for two reasons: Pinnacle was happy to concentrate on new claims and Panoptic was looking to develop the HMRC R&D tax enquiry potential, which was clearly going to increase in R&D claims based on HMRC activity, and would enable the transparent and educational approach to flourish even more whilst support clients during an enquiry.

By November 2023, the share sale was concluded and Panoptic was approached by a tax defence firm shortly afterwards.

By January 2024, Panoptic had won independent advisory and support work from three specialist Tax Defence firms, as their R&D technical specialist: NHD Tax Solutions Ltd, Tax Resolute Ltd and NHD Tax Solutions (West) Ltd. The need for a fresh approach that was untainted by the known bad habits and practices of the R&D market, together with open and honest advise was welcomed by these specialist firms. This service development is a result of these successful collaborations.

How does Kevin at Panoptic support the tax defence sector?

The service approach is holistic from a clients and accountants point of view, and doesn’t just focus on new claims or just tax defence. It takes the knowledge of defending a claim and ensures that any work captures and covers the risk aspects needed to defend a claim if an enquiry is started in the future:

• Specialised R&D Tax Claim defence work - which is currently a newish area for any tax professional to navigate
• Selective support with new R&D Tax claims is available - to the tax defence clients of the defence firms
• A complete transparent and educational process for client and accountant alike
• Full involvement lies with the client and accountant throughout all processes
• Historic R&D Claim reviews prior to a new claim been made or as part of a tax defence case
• Support in preparing an R&D defence strategy – in conjunction with a director of the tax defence firm
• Pre-call preparation for the Competent Professionals and claimant company Directors
• Process support and representation on HMRC enquiry calls
• Process support and representation on ADR enquiry calls
• Fee based work so the client or accountant only pays for the time spent advising or supporting the R&D related work involved
• Automatic affiliation with a tax defence specialist for all other areas of tax enquiry, not just R&D

Self-Regulation and CPD (Contiuous Professional Development)

Panoptic is a proud member of The R&D Community. 

To ensure that any new legislation or different scheme rules are applied correctly on an ongoing basis, Panoptic subscribes to, and has additional resources available at The R&D Community to double check any areas of complexity as needed.

You can learn more about The R&D Community at: https://the-randd-community.co.uk/