HMRC coming down hard on companies who push the boundaries
When it comes to the R&D programme, there are many growing concerns regarding R&D Tax Credits.
Within the UK, companies have had it easy when it comes to HMRC’s query rate of R&D Tax Credit claims compared to other counties…until now!
We are now noticing that HMRC are sending letters to claimants reminding them of the penalties that may be imposed for R&D tax credit claims that do not meet the criteria.
In one case – RDP Associates Ltd. (“RDP”) advised a company that their R&D work did not qualify as “eligible”. Through another R&D tax credit service provider, the company filed an R&D tax credit claim. The R&D claim was processed, and a refund was issued. However, 4 months later HMRC queried the R&D claim, denied it, and sought repayment of the refund with interest. As the company had spent the refund, it put the company in a difficult cash flow position.
This scenario is becoming more common practice as these situations are multiplying.
Companies and Accounting Firms getting hit by questionable R&D Tax Credit Service Providers
RDP meets with many accounting firms every week and have developed great relationships with all these firms. However, we often hear stories where a client has engaged an R&D tax credit service provider and that upon an HMRC query, the R&D tax credit service provider is nowhere to be found. As HMRC has taken a negative view of the R&D tax credit claim, the accounting firm is then left with a mess to deal with and client who is not happy.
A key part of RDP’s service is managing an HMRC query of an R&D tax credit claim. We ensure we supply HMRC with all the information they require, attend HMRC meetings, and coach the client beforehand. We stand by our work!
RDP also assist a few law firms whose clients are in dispute/litigation with HMRC on R&D tax credit matters, so we are well versed in defending claims.
Here are a few key facts on how RDP can help:
- RDP are part of the HMRC R&D tax credit stakeholders’ group that meets during the year. This means we are current on all issues.
- Have prepared R&D tax credit claims for HSBC, Balfour Beatty, Bombardier, and Barclays, as well as start-ups.
- We have 35 technical staff whose backgrounds range from software specialists, engineers, and scientists in physics, chemistry, and life sciences. Our flagship R&D tax credit platform is the Innovation Connection Program (“ICP”), which identifies and creates supporting documents for R&D tax credit projects in real-time.
- We are an international firm who have prepared over 10,000 R&D tax credit claims since 1987.
If you are looking to work with a firm who has the experience, professionalism and a solid reputation, please contact us at: