Questions from HMRC about an R&D claim can appear daunting. However, they should not be surprising given the general principle in UK taxation of self-assessment and HMRC's responsibilities to check the correct amount of tax is being paid.
The best way to effectively handle HMRC checks is to get things right in the first place. If you have approached the claim in a thorough fashion, taken professional advice, and produced good supporting documentation, then you can deal with questions from HMRC in a confident fashion.
As part of our service we assist you in handling all HMRC enquiries and if required attend meetings with HMRC. We have a 100% successful claim record and our Managing Director attends all meetings with HMRC, as well as the consultant handling your claim.
It is important to understand that if HMRC discover mistakes in your R&D claim in terms of either the qualification – i.e. are you doing R&D? – or the costs claimed, that they can look back at previous claims as far as six years from your current accounting period. This can result in them asking for significant amounts of money back.
Already the subject of an enquiry? We are willing to discuss assisting on claims where we have not worked from the start if questions have been raised. We will take an initial, without obligation, view. If we believe a claim is clearly not defendable we will say so. We only become involved if we believe our experience can help recover the claim and a good chance of a successful outcome exists. This work is higher risk but we have never had a claim turned down that we have taken on at this stage.
Worthwhile? An R&D claim can appear like a lot of effort. Statistics vary on the average claim value but £50,000 for an SME is a fairly conservative estimate. How much work does your company do for £50,000 net profit from sales? Most of our clients feel a lot more than for an R&D claim. It is worth some effort.