With January being a hectic month, the last thing you want to deal with is an HMRC compliance check on a client’s R&D Tax Credit claim. These checks are very time-consuming and HMRC typically requests a vast amount of information to support the claim. RDP takes away the heavy lifting involved in defending a client’s R&D Tax Credit claim on behalf of the accounting firm.
HMRC Compliance Checks – Case Study
An accounting firm came to RDP with an R&D Tax Credit claim prepared by another R&D Tax Credit service provider. HMRC had denied the R&D Tax Credit claim on the basis that the information supplied to describe the R&D projects did not meet the definition of R&D. RDP agreed with HMRC’s assessment based on the information submitted to HMRC.
RDP then reviewed the projects with the client and determined that, in fact, the projects were eligible. The project descriptions prepared by the other R&D service provider did not adequately delve into the work done in sufficient detail to identify the technological uncertainty and advances. The client realised that this was due to the fact that the other firm did not have the technical knowledge or academic qualifications in the client’s industry. RDP’s staff had both the experience and academic background. Along with a full understanding of the work undertaken by the client.
Once RDP had redrafted the R&D project descriptions. The client clearly saw the difference and stated that RDP project descriptions were on point. More importantly, HMRC then approved the R&D Tax Credit claim, which was substantial.
How Can RDP Help?
HMRC is not letting up on compliance checks. As they have stated that there are at least over £1B of R&D Tax Credit claims in error. RDP is very experienced in preparing and defending R&D Tax Credit claims with over 20 years of experience working in the UK and over 35 years in other countries that have much stricter compliance checks than the UK.
RDP knows what it takes to prepare an R&D Tax Credit claim correctly, in the first place. Our staff are software specialists, engineers and life science professionals covering all fields of science and technology. Clients quickly see that RDP staff understand what they have developed, and the technology involved. This makes it very easy on the client.
For more information on HMRC Compliance Checks, please contact 0208 214 1341 or [email protected] to discuss further.