R&D: HMRC Tax Compliance Checks and Enquiries

01.05.2024
Sam Palmer
Tax
Sam Palmer

As the number of companies benefiting from the Research and Development (R&D) Tax Credit system has grown, so have HMRC's efforts to prevent erroneous claims.

Sam Palmer

A vastly increased number of HMRC staff have been deployed to review R&D claims and challenge the accuracy and eligibility of an increased number of claims.  In such cases, HMRC will request more information and evidence to verify an R&D claim. This is referred to as an 'enquiry' or ‘compliance check’ and can be an exhausting and time-consuming endeavour.

According to a new House of Commons study, one in every five R&D Tax Relief submissions is being investigated, a twentyfold increase over HMRC's previous inquiry rate of "around 1%".

How we can help

Without the right expert in your corner these enquiries could become protracted and stressful. Lovewell Blake has a team of friendly, professional advisers, specialising in R&D tax relief, who can help you achieve an effective resolution.

Our team will review your HMRC R&D enquiry details using our financial and technical/scientific expertise. We assess the likelihood of a successful defence and implement a tactful response based on our extensive knowledge of the legislation and HMRC’s activity.

We will always be upfront with you about your claim and provide honest advice and pragmatic strategies that fit you circumstances and budget.

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