So, you filed a Research & Development (R&D) incentives claim but HMRC have issued an enquiry into it? Don’t worry, we’re here to help.
At Cooper Parry, our R&D incentives experts deal in high-quality, well-versed, straight-talking advice and expertise. We have an in-house team of R&D specialists who’ve been dealing with tax incentives claims since the scheme began in 2000, and we have an excellent, long-standing relationship with HMRC.
So, rest assured, you’re in superbly safe hands with our Cooper Parry Enquiry Resolution Service (CPERS).
PREPARING FOR AN R&D TAX INCENTIVES ENQUIRY
From the top: what is an R&D tax incentives enquiry all about?
An R&D incentives claim can reduce a company’s corporation tax liability or generate a cash tax credit payable to the company. To obtain the benefit, a taxpayer should submit an R&D incentives claim as part of their corporation tax return, supported by relevant documents to substantiate the claim.
But, sometimes, there’s a catch
If your basis for claiming and/or how you’ve calculated the amount aren’t clearly depicted in the claim, HMRC can initiate an enquiry into it. This involves them closely examining the documents you’ve submitted and asking additional questions, either over letters, emails, or sometimes, in person.
Finding out your claim is under enquiry can be unsettling (and time-consuming), even if you have all the right reasons for submitting it. But that’s where the CPERS team can help.
We use all our experience and know-how to prepare your enquiry response, with HMRC’s requirements and expectations front of mind. We’ll take care of the whole process on your behalf, guiding you through every detail and helping to bring the enquiry to the correct conclusion.
HOW DOES AN ENQUIRY AFFECT YOUR BENEFIT?
If HMRC has made a formal request for information, it’s likely that any benefit arising from the R&D incentives claim will be put on hold until the outcome is decided. If a reduction in corporation tax does arise as a result of the claim, a company can choose to pay the reduced corporation tax liability.
Subject to an adjustment being made as part of the enquiry, the company may incur interest and, in some instances, penalties upon finalisation of the enquiry process.
If the claim gives rise to a tax credit payable to the company, HMRC are likely to put this payment on hold until the enquiry is finalised.
We work closely with our clients and have successfully agreed interim payments be made to companies throughout the enquiry process to aide cashflow requirements.
WHAT HAPPENS IF HMRC FIND A PROBLEM WITH YOUR CLAIM?
If an error is found in your claim, you may have to settle for a reduced benefit value. If there’s a major discrepancy though, HMRC may even charge you with a penalty owing to alleged negligence.
WE KNOW THE R&D INCENTIVES REGIME CAN BE TRICKY
That’s why we’re here to guide you through HMRC’s queries. If your company meets the R&D criteria, you’ve followed honest working practices and submitted legitimate documents, you’ve got nothing to worry about. We’ll work closely with you to bring your enquiry to a fair conclusion.
Ready to chat about how we can assist you? Get in touch today.