How Do You Know Your R&D Tax Credit Claim is at Risk?

by | May 18, 2023 | R & D Tax Credits | 0 comments

How Do You Know Your R&D Tax Credit Claim is at Risk?

As a result of HMRC’s massive crackdown on R&D Tax Credit claims over the past year, companies are worried about the risk to their R&D tax credit claim. No one likes to receive an enquiry letter from HMRC and have their business under scrutiny. So, while there is no guarantee that your R&D Tax Credit claim will not be selected for an enquiry, a respectable service provider like RDP should ensure a successful outcome.

Here, we explain some warning signs that could put your claim at risk and raise red flags with HMRC:

  • Is your gut telling you something isn’t right? Are you saying something like “What we do doesn’t seem like R&D to me, but our service provider is willing to file a claim”?. This should never be the case. At RDP, we claim only eligible R&D work and if the work qualifies our clients understand exactly why. Always trust your gut, and don’t agree to anything if you are unsure about your R&D Tax Credit claim. 
  • If you use an outside R&D tax credit service provider, do they have the technical background to prepare and more importantly defend the R&D tax credit claim? RDP has over 35 technical experts covering all fields of science and technology. But with HMRC’s recent focus on R&D project eligibility, it is important you work with someone who understands your technology as well as the state of the art in your industry. Someone that has the credibility to defend your R&D tax credit claim. 
  • Is your R&D tax credit service provider willing to manage and defend any HMRC enquiry on your behalf? This is the true test of your R&D tax credit service provider and where RDP shines. RDP attends all HMRC meetings, briefs you before the meeting and ensures the right information is conveyed to HMRC.
  • If you prepare your own R&D tax credit claims, have you identified your in-house competent professional? Who can speak to HMRC about why the projects qualify as R&D. But with many misconceptions about the criteria, the competent professional can fall into traps. It is RDP’s experience that the competent professional needs and appreciates assistance with HMRC enquiries. We have a whole procedure for this to put your competent professional at ease.

How do I know which Service Provider to use?

There is one question we often ask companies either using a R&D tax credit service provider or claiming R&D tax credits on their own. The question is “Are you 100% confident you are claiming all R&D projects, activities and costs?” If the answer is no, your current process is not a good fit.

RDP has a proprietary process where we explain what R&D work was claimed and what was not claimed. So, by doing this, the client is confident no stone has been left unturned. Our clients tell us they have a feeling of confidence in the R&D tax credit claim using RDP’s process.

Business - R&D Tax Credit Claim

Running of Your Business!

With the changes that have occurred and that are coming into place later this year, companies eligible for R&D tax credits feel it may not be worth making a claim. Keep in mind that R&D tax credits are an entitlement under the Income Tax Act. Which assists companies fund their R&D efforts. But don’t forgo this entitlement because of these changes. RDP also works in countries where the R&D program is much more strictly enforced than in the UK. RDP has the experience and staff to assist any size company in any industry prepare and defend an R & D tax credit claim. 

By engaging RDP, You focus on your company while we focus on your R&D Tax Credit claim….. It’s as simple as that.

RDP have prepared over 10,000 R&D tax credit claims. Our experience and proprietary process (“ICP”) can ensure your success. 

So, to learn more about our services and fees, contact us today at 0208 214 1341 or email Jenni at [email protected].