According to a forum letter posted on Straits Times, some consultants and vendors may be wrongfully benefitting from the Productivity and Innovation Credit (PIC) scheme. The PIC bonus and cash payout were created to encourage business owners who hire at least three local employees to spend on approved PIC activities.
We have come up with four tips on how to avoid falling prey to such vendors.
Know how much you can claim
Knowing how much PIC Scheme Guide you can claim helps you determine what your expenditure budget should be and what costs you can offset.
It also helps you determine if a vendor is quoting you excessively.
Do some research
Do not be pressured into buying from a friend or family member if it does not make sense to your budget.
Take some time to check what the market rates are for a particular service/good you are looking to acquire.
Get at least 3 quotes and determine which are reasonable and make sense to you. Insist on a quote that is itemized and checks it against your own findings. Be careful if you see a quote you suspect is inflated.
Read before you sign
The PIC Scheme is part and parcel of the accounting services that you have employed. Be wary if your consultant approaches you and insists that you sign an agreement that accords them access to a part of your PIC cash payout.
The cash payout is for your PIC activities only and your accounting services provider does not have to pay for your PIC application.
Never pay in full upfront
Instead of paying for your PIC equipment in full and upfront, it is more prudent to place a down payment first.
Fulfill the rest of the payment only upon ensuring that your goods are goods are delivered to you safely and have not defected.