R&D tax credits could be a valuable cash injection for your business. The daily work you consider as merely “getting the job done” may qualify for the scheme — springing a few pleasant surprises along the way.
The government’s incentive to innovate can give you the funds to hire skilled staff, develop new products, overcome COVID-19 and Brexit-induced supply chain disruptions — or anything else you choose to spend your rebates on.
Yet HMRC has grown increasingly concerned about errors occurring in R&D tax credits claims. Coupled with the growing pool of “cowboy” R&D advisers, who aren’t regulated and are willing to take advantage, HMRC has introduced measures to improve R&D claims’ quality — including 100 new compliance staff to its R&D unit.
When HMRC challenges
HMRC challenging your R&D tax credits claim could spell bad news for your business. Not only will it delay your funding by several months, but it could also damage your relationship with HMRC, reduce your funding windfall, and embroil your people in lengthy back and forths with tax inspectors.
At Easy R&D, we make the decision to sign off your R&D tax credits claim an Easy one for HMRC to make — protecting your business and its reputation. Our good relationship with HMRC ensures any challenges are in the best possible hands — saving you from a nerve-racking wait on their findings.
While the minority seeks to abuse the scheme deliberately, unintentional mistakes in R&D tax credits claims are becoming too familiar for HMRC’s liking. They’re often caused by businesses attempting to claim themselves — underestimating the work that goes into getting a claim right.
If HMRC identifies an error, they may charge a penalty based on the tax loss to the Exchequer. The severity of the punishment will depend on whether due care and attention are determined to have been given to the claim. If reasonable care has been taken, a penalty of ‘nil’ may be applied.
With us, you’ll get a service built around expert consultants, skilled technical report writers, chartered accountants, and meticulous methods to ensure your R&D tax credits claims are successful — with maximum return. Averaging £54,000 per claim, our unrivalled specialist expertise and robust processes will know which costs to include and which not to include, keeping HMRC’s investigation to the absolute minimum — if any at all.
If you think that your business doesn’t qualify for R&D tax credits, then you could be wrong. If you do believe your business qualifies for R&D tax credits, then you could be right. You can find out for sure by getting in touch with us here.