Learning from the R&D tax relief enquiry process

Key points

• HMRC enquiries into research and development claims have become commonplace.
• Defending a claim during an enquiry is a time-consuming and resource-intensive process.
• Importance of having comprehensive and contemporaneous records.
• Access to a person with expertise in the research undertaken is vital.

HMRC has been carrying out a mandatory random enquiry programme on claims made in 2020 and 2021 by small and medium-sized businesses to gain a better understanding of levels of non-compliance with research and development (R&D) tax relief regulations. While this endeavour is uncovering more fraud and error it is also catching genuine claims in its net.

As enquiries have become more commonplace we have found ourselves defending more than ever before. We stand by every single claim we have submitted and will support clients throughout the entire process.

Non-compliant claims

HMRC’s approach is not unwarranted. Its latest report found fraud and error in...