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HMRC Enquiry Support

Are you facing an HMRC enquiry for your R&D tax relief claim?

Our team of experts is committed to providing you with the information and support you need if you are facing an HMRC R&D tax relief enquiry. We understand that this can be a complex and time-consuming process, which is why we offer tailored support to companies who have claimed under both the SME and RDEC scheme.

What is an HMRC R&D enquiry?

R&D tax relief enquiries from HMRC are on the rise.
If you file an R&D tax relief claim and HMRC requires further information, an enquiry will be raised. An inspector will ask questions to better understand your company’s R&D and the related costs. A strong and robust claim is more likely to withstand this scrutiny, and you or your R&D advisor should be able to provide satisfactory answers to HMRC’s questions. However, an insufficient claim could negatively impact the value of your relief and potentially result in penalties. It’s important to note that an enquiry could delay the processing of your R&D tax relief and may even be initiated after you have already received the benefit.

As a claimant business, it’s crucial to ensure the completeness and accuracy of your claim prior to submission and be prepared to answer any enquiry questions in a satisfactory and professional manner.

Why does HMRC launch an enquiry?

Since the scheme’s inception, HMRC has conducted regular checks on a percentage of R&D claims submitted each year. With recent changes in legislation and the introduction of additional R&D tax relief resources, these checks are being carried out more frequently. The reasons why HMRC might open an enquiry can vary. Some enquiries will be selected completely at random, which may seem unfair to those companies who are working on genuine R&D projects. However, it is important to understand that the enquiry service is designed to improve the accuracy of claims, identify any potential errors or fraud, and ensure that future compliance checks are more effective. HMRC may open an enquiry for the reasons listed below:

Claim inconsistency

There may be a discrepancy between the financial information submitted and the associated R&D technical narrative.

Missing information

You may not have submitted sufficient supporting information or there could be a query against the information submitted.

Change in circumstances

Maybe there is a significant increase in the amount of R&D expenditure you have identified compared to previous years.

Wider questions

For example, if there are questions raised about your general tax return, your R&D tax relief claim may also be questioned.

Sector specific enquiries

HMRC may be conducting enquiries into a specific sector to make sure all claims in the sector are consistent.

Random selection

A percentage of claims each year are chosen at random for enquiry to ensure consistency and reduce error and fraud.

Need help with an HMRC enquiry?

Enquiry support is included in the SciTax fee structure

At SciTax, we take pride in our commitment to our clients. When you work with us, we provide a comprehensive service that includes defending any HMRC enquiry at no additional cost to you, ensuring that you can continue to focus on your business.

Our specialist team create thorough, well-presented R&D tax relief claims that adhere to the current legislative guidelines, and we ensure that every aspect of your claim is reviewed thoroughly by our technical director before submission. Our robust approach and attention to detail provides you with the confidence you need should you ever face an enquiry. Working with us will give you peace of mind, knowing that we are here for you every step of the way.

What if I am not a SciTax client?

If you have submitted an R&D tax claim yourself or with another provider and are facing an HMRC enquiry, we may still be able to help you. Once you have received a query or a nudge letter from HMRC, it is vital to take prompt action to safeguard your benefit. Our team can offer support with any R&D tax relief enquiry and provide a comprehensive claim review to ensure complete peace of mind.

Pre-submission, we can review your R&D tax claim and provide advice with regard to HMRC’s ever-changing regulations. Our team can offer actionable insights to ensure your claim is compliant and optimised. Post-submission, our R&D tax consultants can assist you in evaluating the documentation you have submitted, identify and correct errors, and compile additional documentation to support your claim.

Latest HMRC enquiry news

R&D Claims: More Info required from 1st August 23
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HMRC Issues 2,000+ ‘Nudge’ Letters to R&D Claimants
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2023 Changes to R&D Tax Relief: Explained
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Autumn Statement 2022 – Changes to R&D Tax Relief
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