HMRC has stepped up their scrutiny for Research & Development (R&D) tax reliefs by recruiting 100 new inspectors, highlighting the importance for businesses to put together a robust R&D tax credit claim.

Devil is in the detail

While the HMRC’s R&D tax relief units are highly skilled, they are unlikely to be experts in your business’s sector, particularly if it is highly technical. Therefore, supporting your claim with suitable details, such as a comprehensive explanation of the project and the technical innovation it is intended to lead to, can significantly reduce the risk of a claim being challenged by HMRC.

In addition to this, an insufficient amount of information around the projects costs claimed is likely to draw unwanted attention to the claim. HMRC inspectors are adept at identifying claims which are not in line with similar projects and will question any unusually high costs.

Avoiding unnecessary costs

Bringing in an external R&D claim expert from the beginning of the process offers an efficient way to ensure all the necessary data is captured. Your claim will also be meticulously reviewed prior to submission so the risk of post-submission enquiries from HMRC will be mitigated – saving you and your business time, while providing clarity over the amount of relief available.

If you would like to discuss the availability of R&D tax incentives in the context of your own business, please get in touch with our tax team on 01788 539000 or 0116 261 0061.


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