What to look for in a capital allowances adviser

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Instructing a new professional adviser is an important decision, which requires evaluation of a range of factors. Appointing a capital allowances adviser is no exception. A variety of advisers exist in the marketplace, each offering a wealth of USPs and services to meet individual needs.

But for anyone new to claiming, it can be difficult to know where to start. With that in mind and to help you make an informed decision, we’ve identified five key things that you need to consider before signing on the dotted line.

So, whether you’re at the start of your capital allowances journey or looking to appoint a new adviser with a fresh perspective, why not utilise our checklist as the first step in the process?

1. Research their industry credentials

Capital allowances are claimable via your tax return submitted to HMRC and any advice provided to support that claim constitutes tax advice. As such, it’s important that any adviser you contract with has the relevant tax qualifications and experience. Most importantly, do they have a professional qualification, such as ATT or CTA?

ForrestBrown is a member firm of the Chartered Institute of Taxation (CIOT) and our team includes a large pool of qualified chartered tax advisers and chartered accountants.

This means that each of our clients can be sure that:

• They are dealing with appropriately qualified tax professionals who have sat and passed detailed technical examinations in tax.
• We undertake regular training to stay up to date on tax law and CPD records can be reviewed by CIOT at any time.
• We hold relevant professional indemnity insurance to protect our clients should something go wrong.
• We are subject to formal disciplinary procedures from CIOT to deal with complaints.
• We adhere to a strict code of conduct (Professional Conduct in Relation to Taxation) informing our processes and professional behaviours.
• We will only provide advice when we are competent to do so, that we will deal with their affairs professionally and transparently and that we will explain clearly any risks associated with our advice.

Appointing an adviser with these credentials won’t completely guard against any negative experience, but it will give you peace of mind that you’re protected should any issues arise.

2. Do your due diligence on their industry and tax expertise

Since capital allowances are a specialist area of tax advice, it’s important that you’re advised by a team experienced in handling that type of claim. Have a look at the team’s credentials and whether capital allowances form a part of their core service lines.

It’s also useful for capital allowances advisers to have industry knowledge and, ideally, experience. This will help them to determine, for example, which equipment might qualify for plant and machinery relief and they will be familiar with the range of different interests in and relationships with property.

They will also be familiar with the types of professionals working in property such as quantity surveyors and will know the terminology used. They can address questions to the correct professionals and readily understand their responses. This ensures that all relevant information is extracted quickly and translated effectively for tax and accounting purposes, helping to remove the risk of misrepresentation.

3. Is the adviser willing to undertake site visits?

Given the physical nature of items claimed as capital allowances and the fact that those items may be located across multiple sites, a site visit will often be needed as part of the due diligence process. This is particularly the case when quantifying claims for large and/or complex projects.

A reputable adviser will do the groundwork and undertake any necessary site visits. It demonstrates an individual approach to each claim and that adequate time and consideration have been given to the due diligence process.

If you’re a firm that has a potentially large or complex claim, check what the due diligence processes are for any shortlisted advisers and whether they will meet your business’s requirements. Doing that work up front could save time in the long run and help to fully capture the value of your claim.

4. Meet the adviser before engaging

As is often the case, it’s better to meet in person, before committing. Use the opportunity to ask questions and clarify the answers to some of the points raised above. Get a sense of the adviser’s level of knowledge, who might be handling the claim and what their level of expertise is.

Find out what their contractual terms are too and, if you’re changing from an existing provider, cover any points that might need to be raised in relation to that. It would also be sensible to gain insights into the technology and systems that they use too. Do they have a systems-based approach, which is robust and auditable in the event of HMRC scrutiny and has the flexibility to adapt to changes in legislation? This can prove beneficial in streamlining reporting and enabling comparison of capital allowances across multiple sites.

5. Do they offer a bespoke process?

Depending on the type and stage of your business, you may need support with capital allowances over many years. For example, if you’re an investor in commercial property or you are in the growth phase of your company’s journey.

Check with any potential adviser that they have the capacity to offer long-term claims support. Many firms, such as ForrestBrown, can calculate the value of your original claim, in addition to evolving a deep understanding of your business and supporting it on an ongoing basis. This might include helping you to build your in-house capability or liaising with your accountant annually to ensure that the correct information is captured in your annual tax return.

A holistic approach

Whatever stage you’re at in your capital allowances journey, keep these key points in mind when you’re evaluating your options. Remember too that capital allowances might not be the only incentive that you’re eligible for. If you’re undertaking research and development, you may be eligible for R&D tax relief, or if you’re investing in new plant, you may be eligible for a grant.

By appointing a firm that takes a holistic approach and offers advice across a range of incentives, you’ll future proof your business and ensure that you’re making the most of the opportunities available via the innovation toolkit.