Including ineligible items
Including costs or activities that do not qualify can result in HMRC enquiries, delays and potential financial penalties.
Preparing an R&D tax relief claim requires a clear understanding of the underlying science or technology, the qualifying expenditure and the evidence HMRC expects to support the claim.
Preparing an R&D tax relief claim goes beyond completing standard forms. The claim needs to demonstrate that the project seeks an advance in a field of science or technology and that genuine scientific or technological uncertainties were involved.
That requires both a technical understanding of the project and the ability to present the work clearly in a way that meets HMRC's requirements.
The scientific or technological advance, the uncertainties encountered and the work undertaken need to be explained clearly. The expenditure included also needs to relate to qualifying R&D activity.
Without the right expertise, problems can arise in both the expenditure included within the claim and the way the supporting evidence is presented.
Including costs or activities that do not qualify can result in HMRC enquiries, delays and potential financial penalties.
Even where qualifying R&D has taken place, the claim still needs to communicate the eligibility of the work in terms that HMRC can assess.
Specialist knowledge is particularly important when identifying qualifying activity, presenting technical work clearly and applying the current R&D tax relief rules.
Our qualified industry experts understand the legislation and can identify which activities and costs do, and do not, qualify for R&D tax relief.
Complex technical terminology needs to be converted into clear explanations that align with HMRC's definitions for qualifying R&D.
Our specialists keep up to date with legislative changes, HMRC guidance and changes to the R&D tax relief schemes, including the merged scheme.
Before an R&D tax relief claim is submitted, it passes through our Quality Assurance process.
Our QA team examines the technical document prepared by one of our analysts to assess whether the claim meets HMRC's eligibility criteria for R&D tax relief.
Former HMRC inspectors form part of that process, bringing first-hand knowledge of the enquiry process and how R&D claims are considered.
An HMRC enquiry can be time-consuming and costly, particularly where a business does not have the expertise needed to address the technical and tax questions being raised.
Our team includes former HMRC inspectors with first-hand experience of the enquiry process.
Find out more about how MSC R&D supports businesses during HMRC enquiries into R&D tax relief claims.
HMRC enquiry supportSpeak to MSC R&D about preparing an evidence-based R&D tax relief claim supported by specialist technical, tax and Quality Assurance expertise.