.png)
.png)
The taxpayer was an engineering company founded in 1969.
It submitted amended tax returns for 2009 and 2010 claiming research and development relief and enhanced research and development expenditure under the small and medium-sized enterprises (SME) scheme of about £300 000. The claims were supported by a report including details of expenditure on several projects prepared by a specialist research and development adviser.
HMRC opened enquiries into both periods. It requested more information on the claims to ensure they met the statutory requirements but was not satisfied with the documentation the taxpayer sent.
The taxpayer applied to the First-tier Tribunal for closure notices on the basis that it produced all the information requested.
The First-tier Tribunal said the taxpayer was ‘required to demonstrate that there was a clear methodology behind the activities which were carried out such that it identified the uncertainty it sought to resolve and in doing...
