For most innovative businesses, the natural route when applying for tax claims is by hiring someone with relevant experience to do it for them. Generally, this will be a tax agent or an R & D Tax Consultant. Whatever company you will hire must be registered with the Tax Practitioners Board as these are the only agents who are eligible to file tax returns in Australia and charge you with a fee. Registered tax agents must also follow very strict laws which have been put in place in order to ensure that they are acting in a professional manner on behalf of their clients.
There are plenty of reasons why you should get assistance from an R & D Tax Consultant to file your claims. Registration forms for these claims involve a lot of technical details. After all, if you are dealing in areas of research and development, you need to demonstrate that in your registration form so that your incentive eligibility can be determined.
The technical writing involved in filing for the R&D tax incentive claims is not always a simple and straightforward procedure. Many companies, therefore, need technical and professional assistance in order to file this successfully. An external tax consulting company will help you in identifying R&D eligible activities in your company that can get strong consideration for your company to qualify for those tax advantages.
Here are some important factors that you will need to consider in order for you to identify the right external R & D Tax Consultant to assist your company:
- Do they have the knowledge and experience in R&D tax consulting? This is really a primary consideration. There are many tax consultants capable of filing tax returns but lack specific experience on the ins and outs of the R&D tax management. They may not have the technical proficiency and knowledge to understand and describe the technology that your company is using to foster innovation in your business environment. As a result, they are likely to submit a technically inferior registration form that no one will give a serious consideration. This is why it is very vital that you hire an R&D tax consultant that is specialized in this area of R&D tax regime. Whoever you hire must also be a registered tax agent. This cannot be emphasized enough as it is a legal requirement.
- What pricing model are they using? Is it a fixed price fee or percentage? These are two conditions against which you should evaluate the fees that you are being charged by the registered tax agent. Another way to look at this is by determining the amount of money that you will have left in your pocket after you have completed the process. Are the tax consultants too expensive that they are likely to drain your finances? Some consultants can charge as much as 30% of tax rebates when your application is successful and that is not reasonable.
- Are there any hidden costs? Ensure that the consultants helping you determine your incentive eligibility do not have charge hidden costs. Take time to read the fine print before signing on the dotted line so you will not be surprised on the final cost.