R&D tax relief: what you need to know about HMRC’s increased scrutiny

You’ve probably seen the headlines—HMRC is tightening up on R&D tax relief claims, and it’s got some management teams feeling a bit uneasy. But don’t worry—if your claim is accurate and honest, there’s nothing to fear.

Here’s what you should keep in mind:

1. Compliance Checks Are on the Rise:

HMRC is digging deeper into claims, often covering one or two accounting periods. Be prepared for questions and possibly a delayed payment. The key is to answer HMRC’s questions clearly and confidently.

2. Solid Documentation is Crucial:

HMRC wants to see that your R&D projects genuinely push the boundaries of science or technology. Make sure you’ve done your homework and can show there were no easily deducible solutions at the start of your project. Properly filled-out Additional Information Forms (AIF) are now mandatory, and over half of the early submissions were rejected for being incomplete—so attention to detail is essential!

3. Show Your Work:

HMRC will want to know that your team tackled real technological uncertainties and had the right experts on board. Demonstrating that your technical staff are competent professionals is vital to a successful claim.

It’s clear that the rules are evolving, and the scrutiny is only going to increase. Working with an experienced R&D provider can make all the difference in ensuring your claim is robust and ready for HMRC’s inspection.

If you’re dealing with an enquiry or just want to make sure your next claim is airtight, please get in touch with VISIATIV, and a representative will get back to you to discuss your unique needs and explain how we can assist.