HMRC Enquiry Success at YesTax
It’s now common knowledge that things aren’t as they were where R&D tax relief is concerned. The last 18 months have seen a swathe of legislative changes which have reduced the amount of additional relief given on qualifying expenditure and introduced new statutory requirements for the submission of claims. However, it’s arguable that the most significant departure from convention is the number of HMRC enquiries which are raised on R&D tax claims, and the manner in which they are conducted.
Since late 2022, HMRC have opened enquiries into huge numbers of R&D tax relief claims. LinkedIn and other media channels have been swamped by furious claimant companies and their advisers, complaining about the blunt force tactics being employed by HMRC. As one commentator quipped ‘HMRC have made their choice where R&D tax claims are concerned. They’ve chosen violence’.
Whilst HMRC’s approach to R&D claims involves violence only in the metaphorical sense, few can deny that their tactics have been controversial. It’s one reason why a successful outcome to an enquiry is reason to celebrate.
YesTax celebrated two successful enquiry outcomes in the space of a few hours earlier this month. An enquiry closure notice with no amendments was issued after a six-month enquiry was concluded for a company involved in the development and manufacture of high-performance windscreen wiper technologies. We were delighted to receive the following comments from the client’s Financial Director
Congratulations on a job very well done. A brilliant result. Thank you very much for your help and guidance.
A few hours later, a second enquiry closure notice was received in respect of a claim made by a fintech business involved in the development of a new calculation and decision engine for complex lending transactions. This enquiry had spanned 10 months and had involved numerous letters between YesTax and HMRC, as well as a conference call with the competent professionals. The client was understandably delighted to receive the closure notice confirming no amendments to the claim were required.
That's excellent news. We appreciate the hard work yourself and Alison have put into this claim. I appreciate the process has been frustrating, especially as we have complete confidence that the claim was made in good faith and met the threshold defined within the regulations. It's great that HMRC have acknowledged that.
At YesTax, we have years of experience of not only preparing R&D claims for our clients, but also in assisting accountants across the UK with HMRC enquiries relating to claims they have made themselves. More importantly we love helping our clients and referral partners navigate their way through what is now a very complex and risk-laden area of tax.
If you require assistance with any R&D tax related enquiry, don’t hesitate to contact us at hello@yes.tax
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