Profitable research and development tax credit consultancy

Profitable research and development tax credit consultancy

Our client is a very successful business that offers complete R&D claim management and processing to companies throughout the UK. In less than 24 months of trading, our client achieved successful R&D claims totalling £1.97m at the time of writing. Our client achieves a 70% profit margin on the fees they earn from  successful claims

The company has made £240,000 in gross profits from the £340,000 it has turned over to date. It is highly cash-generative and has not required any access to external finance since its launch. Its business model is unique and exciting in that it relies on the companies using it to claim R&D tax credits to refer other companies. The majority do and receive a payment on a successful referral claim.

This business and its unique approach to marketing its service offers unlimited potential for growth. A new owner will benefit from an excellent client bank representing a cross-section of British industries. Further opportunities to generate additional revenues will come through the provision of related services to end users.

Key highlights

·       70% profit margin achieved on fees for all successful claims.

·       £1.2m in credits applied for in Y22, £1.34m in Q1-Q3 Y23 - month-on-month enquiries up over 34% from Y22 to Y23.

·       Almost all of the claimants are active referrers. The business they have introduced has brought in £270,000 in fees between Jan 22 and Oct 23.

·       Upward quarterly trends in claims dealt with and fees arising from those claims.

·       Ideal for plugging into an existing accounting firm, tax consultancy or business consultancy.

·       Also an ideal acquisition for marketing firms and B2B companies.

·       Flexible handover period – the existing business owners are prepared to stay for a period to ensure smooth handover.

·       Exceptionally high client retention rate of over 90%.

Core activity

Our client works with companies who wish to claim against qualifying expenditures under the HMRC research and development (R&D) tax credit scheme.

Our client has enjoyed much success for companies across a range of industries, including the transport and passenger-carrying sector, engineering firms, aggregate companies, plant nurseries, turf specialists and more.

Our client generates new business through its existing customers. They receive 20% of a referral’s R&D tax credit claim in the first year and 10% in subsequent years. This is on a no-win, no-fee basis.

Another significant revenue source is returning customers who wish to claim against qualifying expenses for the previous year’s R&D activity. As many companies have multiple R&D projects ongoing and a proportion of those projects will last for more than a year, it’s not uncommon for subsequent claims to be larger than original claims.

To make an enquiry

For more information, please contact Swan Corporate on 0800 634 9679 or email [email protected]