Fees and Charges

Fees and Charges

The following fee example is provided for transparency and would be outlined in any agreement between the Client and the Company. This example does not constitute an immediate agreement.

Standard Fee Example

If a Client receives £10,000 as a benefit, the Company would charge 25% + VAT, resulting in a fee of £2,500 + VAT (£3,000 inclusive of VAT). Fees are negotiable in some cases.

1. Fees

1.1 Calculation of Fees

Our fee for preparing the technical narrative, financial summary, revised tax documents, facilitating submission of the claim, and negotiating a settlement if required, is calculated as 25% of the R&D tax credit or tax benefits received by the company. If the claim value is adjusted, our fee will be revised accordingly. All fees are exclusive of VAT, which will be added separately.

1.2 Tax Benefits

For clarity, the tax benefit may include:

a) A payable R&D Tax Credit from HMRC.

b) A refund of corporation tax paid.

c) A reduction in future corporation tax payable (e.g., an unsubmitted tax return or payment not yet made). If R&D enhancements are carried forward to a future period or brought-forward tax losses are preserved (i.e., where the R&D relief reduces taxable profit), the tax benefit will be calculated as 19% (rising to 25% from 1st April 2023) of the R&D enhancement or the applicable rate of corporation tax at the time.

2. Payment of Fees

Our fees are payable upon receipt of the cash benefit from HM Revenue & Customs (HMRC). An invoice will be raised each time an R&D tax relief and/or tax credit claim is submitted to HMRC. If the result of our work reduces a future tax liability, our fee is payable upon submission of the claim to HMRC and its acceptance.

3. Invoicing

Our invoice will be issued either:

a) Once HMRC makes a payment or repayment of the cash credit or corporation tax refund. Payment will be due upon presentation of the invoice, effectively deducted from the monies received from HMRC.

b) Upon submission of the amended tax return containing the R&D claim to HMRC.

c) Upon presentation of the report and financial summary.

Benefit Payments and Company Fees

The Client:

i. Agrees to pay the Company a fee of 25% plus VAT (20%) on any benefit amount received as a result of the R&D submission facilitated by the Company.

ii. Agrees that when HMRC processes the payment or in scenarios outlined in clauses 3, 4, and 5 of our engagement letter, payment to the Company will be made within 3 days of receiving monies from HMRC. The Company will contact the Client within a suitable timeframe to discuss fees and payments once the benefit is received.

iii. Agrees that if there is an outstanding liability with HMRC (PAYE, VAT, Corporation Tax), the benefit may be offset against the liability and may not result in a cash benefit.

iv. Agrees that if the benefit reduces the outstanding liability amount and does not result in a cash benefit, the fees are still applicable and payable within 3 days of the reduction.

v. Agrees that the Company is entitled to charge a late payment fee of 5% per annum (accruing daily) above the base rate of National Westminster Bank on any overdue amount after 14 days of the invoice.

vi. Agrees that if the invoice is not settled, the Company may apply for a County Court Judgement (CCJ) and may pass the debt to a third party for recovery, incurring additional fees.

This revised version is designed to be clearer and more concise while maintaining all necessary details.