Given the specialist nature of the R&D claim criteria, the preparation process of the claim is paramount to providing a structured and sufficiently evidenced R&D report. This also helps to provide further justification should a claim be subject to a compliance check by HMRC.
Supporting evidence to underpin the technical merit of a claim and the accompanying qualifying costs are ever important, with an increase in the volume of R&D compliance cases opened throughout the UK since 2023.
Having a dedicated enquiries team helps to plan and navigate those changes by embedding them into CBTax processes, which are reflected in our well-structured claim preparation process.
At CBTax, we are very fortunate to have some extremely knowledgeable and technically-enthused experts, possessing a diverse blend of industry, tax and accountancy experience. This enables us to offer comprehensive advice and has helped navigate an ever-changing R&D tax environment surrounding the preparation and filing requirements of a qualifying R&D claim.
HMRC accounts note that an average enquiry duration totals 18-months. CBTax compliance strategy and efficiency has consistently seen cases settled well within these timescales, due to the proactive nature of our approach to resolving enquiries efficiently and effectively within the parameters which we can control.
Throughout 2023, there was a sharp rise in HMRC R&D enquiries across the UK affecting all sectors, to ensure claims remain compliant. New HMRC filing requirements were released in August 2023, as well as GcF3 guidance published in October 2023 to aid prospective claimants.
The company receives an official communication from HM Revenue and Customs (HMRC) regarding a Research and Development (R&D) tax relief enquiry. This letter typically outlines the nature of the enquiry and any additional documentation or information required. You will then be required to respond to HMRC's enquiry, this involves; compiling relevant evidence, providing clarification on any queries, and being proactive to highlight any other supporting information that may be relevant to aid the officer reviewing the case.
If the issue remains unresolved, after submitting responses to HMRC’s points of contention then Alternative Dispute Resolution (ADR) is prioritised should communication with HMRC breakdown. Further communication or calls with HMRC may also be necessary to address outstanding issues. Should HMRC still disagree with the claim at this stage, our resolutions team will assist in lodging an appeal, to ensure our clients are robustly defended and mitigate the need for a tribunal proceeding. On a case-by-case basis, however, a tribunal may be required.
