SRED Flat Fees: 3 Great Reasons They Beat SR&ED Percentage Models

SRED flat fees are changing the way Canadian innovators access the program. For too long, percentage-based consulting has drained refunds that should fuel R&D. It’s time for something different.

SR&ED contingency fee vs flat fee: what is the difference?

A contingency fee is a percentage of your SR&ED refund, so the fee rises as the claim grows. A flat fee is a fixed price agreed before the work starts, so the fee stays the same whatever the refund.

  • What you pay: under a contingency model, a company with a $200K claim paying 15% hands over $30K in a single year, and more each year the claim grows. Under a flat fee, that same company pays a fixed tier: $15K a year for claims up to $349K, $30K a year for claims between $350K and $999K, or $60K a year for claims of $1M or more.
  • When each suits you: a contingency fee can suit a first-time claimant who wants no upfront cost and is unsure the claim will succeed. A flat fee suits a company with a steady or growing claim, because the price does not climb as the refund does.
  • The one question to ask any consultant before signing: what will I pay in year three if my claim grows?

For more on how these models compare, see SR&ED consultant fees in Canada.

The Old SR&ED Consulting Model: Why Percentages Hurt

For years, the “standard” SR&ED pricing model has been simple on the surface: consultants take a percentage of your refund. But over time, this becomes a drag on innovation.

Take a company claiming $200K in SR&ED every year. At 15%, you’ll pay $150K in consulting fees over five years. That’s money meant for R&D being siphoned off year after year. Many entrepreneurs have come to see this as the “SR&ED tax.”

The SRED.ca Shift: SRED Flat Fees and Full Transparency

We’ve always believed transparency is the foundation of trust. That’s why SRED.ca was the first SR&ED firm in Canada to publicly post our pricing. Now, we’ve gone further with a SRED flat fee model no one else in the country is offering:

  • $15K/year for claims up to $349K
  • $30K/year for claims between $350K–$999K
  • $60K/year for claims of $1M or more

You can pay monthly or all at once – that’s entirely up to you. And unlike contingency fees, our rates don’t rise as your claim grows. That same $200K claim over five years? With SRED.ca, you’ll pay $75K in total.

The key takeaway: tiered percentages still penalize success. Even with lower rates at higher claim levels, costs balloon over time. With SRED.ca’s flat fees, entrepreneurs know exactly what they’ll pay, whether their claim is $200K or even over a million!

How Flat Fees Protect Your Refund and Support Growth

Flat fees aren’t just about paying less. They change the whole relationship between consultant and client.

  • Aligned Incentives: We don’t profit by inflating claims. Our focus is on strong, defensible filings.
  • Cash Flow Friendly: Monthly payments turn SR&ED into a manageable operating cost, not a shock expense.
  • Fairness First: Whether your claim is $100K or $500k, the work to prepare it is similar. Charging more just because you succeed isn’t right.
  • Clarity from Day One: Transparent, upfront pricing means no surprises.

SR&ED Audits: Real Protection with SRED.ca

Audits are stressful, but they don’t have to be. Here’s how SRED.ca helps:

  • We prepare claims so thoroughly that many clients can represent themselves confidently in an audit.
  • If you’d like us by your side, we offer full audit support for a flat $15K.
  • And our guarantee still stands: if CRA cuts your claim below 75% during audit, we waive both the audit fee and the flat fee.

That’s real protection, built to give entrepreneurs confidence, not fear.

Why This Matters

Canada’s economy is in a tough spot. Growth has been stagnant, and entrepreneurs are carrying the cost and risk of R&D. The last thing they need is consultants charging more simply because claims get bigger.

What’s needed now is a model that respects the effort founders put into innovation, keeps more capital in their hands, and makes SR&ED a tool for growth rather than a drain. Flat fees and clear expectations aren’t just pricing changes – they’re a shift in how this industry supports entrepreneurs.

FAQ

What is the SR&ED flat-fee model?

The SR&ED flat-fee model means you pay a fixed, transparent cost for claim preparation instead of a percentage of your refund. At SRED.ca, this ensures your consulting fees stay predictable, no matter how large your claim grows.

Why are percentage-based SR&ED fees costly over time?

With percentage models, consultants earn more as your refund increases. Over several years, this adds up to a significant cost – often hundreds of thousands of dollars. Flat fees prevent this “SR&ED tax,” keeping more capital in your business for R&D.

How does SRED.ca handle SR&ED audits?

We build claims with audit readiness in mind, giving founders confidence if CRA reviews their filing. If you want us by your side, full audit support is available for a flat $15K. Plus, if CRA cuts your claim below 75%, we waive both the audit fee and our consulting fee.


SRED.ca

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