Accuracy in R&D Reports as HMRC take a closer look

on R&D claims at present by HMRC. There is also rumour, that HMRC’s auditors may not sign off their accounts, as they are concerned that some of the R&D claims that have been submitted to HMRC and subsequently processed, may be fraudulent.

To summarise:

It may be clear to you that you are undertaking innovative and qualifying activities for R&D purposes, however, it needs to be presented to HMRC in a clear and understandable way to evidence that it meets the criteria for relief. Your advisor should ask you for detailed evidence of the work before making a claim as there is a much greater level of scrutiny

So, there will now be a greater level of checks for all claimants, even those that are legitimate. The quality of a report is not something to compromise on and although it may be additional work, it’s a far cry from the potential work required in the case of a full enquiry. Ultimately, as a Director, you will sign off your company tax return and R&D report, and thus, you must be happy that the contents are complete and accurate. Our experts will work with your technical staff directly, either by writing up reports ready for your review and commentary or by providing specific review points from your draft write-ups if that’s the preferred method of completion. Whichever process works best, we will tailor it around you.

Remember, as a Director, you ultimately need to be happy that the report substantiates the claim being made, and that the claim is accurate and genuine. HMRC is undertaking much greater checks on claims and additional information may be required.

Be very wary of providers suggesting they can make a claim with limited information as you are ultimately responsible for the submission, not the firm you are engaged with.

We will work with you in a way that suits you best in order to capture high-quality supporting evidence, whilst maximising the relief and minimising any perceived burden of completing it.

If you have any queries regarding an existing claim or would like to discuss our services further, please don’t hesitate to contact Gina Gardner at gina.gardner@ballardsllp.com