What should you do if HMRC enquires into your R&D claim?
HMRC has increased their scrutiny of R&D claims, with one in five submissions now subject to a compliance enquiries. These checks do not necessarily invalidate your claim but rather reflect HMRC’s desire for greater confidence and more detailed confirmation on the nature of the R&D activities you have claimed.
The nature of these enquiries can vary, some are standardised with typically a dozen questions that HMRC routinely ask, while others may delve deeper and scrutinise the technological characteristics of your project.
If not handled well, compliance checks can be lengthy and time-consuming. To navigate and manage these enquiries effectively, it is advisable to engage a specialist. Ideally, this advisor should have scientific and/or technology specialists with experience relevant to your sector/R&D projects as well as tax specialists who thoroughly understand the protocols and requirements of handling HMRC enquiries. This multidisciplinary approach ensures that your claim is robustly supported, leading to a prompt resolution.
At Moore R&D, we can help if HMRC enquires into your claim through our team of technical specialists. We provide expertise across software, biology, chemical and engineering disciplines, as well tax professionals adept at resolving tax disputes or controversies. Our experts understand R&D in these sectors and can help you effectively communicate the critical aspects of your project to HMRC. To help maximise the potential of your innovation through R&D tax incentives, contact us.