Specialist HMRC R&D enquiry support

An HMRC compliance check can require detailed technical, financial and tax information about an R&D claim. Our team can help you understand the questions being asked, organise the supporting evidence and prepare a clear response.

Speak with our enquiry team What is an HMRC enquiry?

Former HMRC inspectors Direct HMRC experience forms part of our specialist enquiry and Quality Assurance capability.

150+ years Combined R&D tax experience across the MSC R&D team.

50 years Combined direct HMRC experience within the team.

What is an HMRC R&D enquiry?

An HMRC compliance check, commonly referred to as an enquiry, is an in-depth examination of an R&D tax relief claim.

HMRC may ask for further information about the qualifying projects, scientific or technological uncertainties, the competent professionals involved, expenditure claimed and the evidence supporting the company's position.

An enquiry can continue for several months, depending on the questions raised and the information required before HMRC reaches its conclusion.

HMRC compliance check

The focus is the evidence supporting the R&D claim

A claim needs to explain why the underlying activity qualifies for R&D tax relief and how the expenditure claimed relates to that activity. During an enquiry, HMRC may test both the technical explanation and the financial calculation.

Areas that can lead to HMRC questions

HMRC enquiries can arise for different reasons. The following are examples of areas that may result in closer examination of an R&D tax relief claim.

Insufficient supporting evidence

The information submitted does not provide enough evidence to demonstrate why the activity or expenditure qualifies.

Costs that require further explanation

HMRC may question whether expenditure included within the claim falls within the relevant qualifying categories.

Unclear qualifying projects

The claim does not clearly demonstrate the advance sought or the scientific or technological uncertainty involved.

A significant change in claim size

A material increase in the value or scale of the claim may require further explanation and supporting information.

Inconsistencies in the records

Differences between the R&D claim and the company's underlying financial information can lead to additional questions.

Weak technical narratives

Technical information that does not clearly explain the baseline, advance, uncertainties and work undertaken may make it harder to demonstrate eligibility.

Specialist support when HMRC asks questions Technical, tax and former HMRC experience can be brought together to assess the points raised.

How we support an HMRC enquiry

HMRC correspondence can involve detailed questions spanning the technical basis of a project, the qualifying expenditure and the evidence retained by the company.

Our team can help assess the questions being asked and bring together the information needed to prepare a structured response.

Understand HMRC's questions We assess the enquiry correspondence and identify the technical, financial and tax points that need to be addressed.

Gather the supporting evidence We work with the relevant people in the business to organise project information, financial records and other evidence relevant to HMRC's questions.

Prepare a clear response The technical and financial information is brought together into a response that addresses the specific points raised by HMRC.

Support ongoing correspondence Where further questions arise, we can continue to help the business assess and respond to HMRC's requests.

Concerned about a claim before HMRC opens an enquiry?

If you already have an R&D claim prepared by an internal team or another adviser, specialist support can help you examine the technical narrative, financial calculation and supporting information before submission.