Research & Development (R&D) relief is available to any UK based company which incurs costs on being innovative in their respective field. HMRC have disclosed the need to increase resources into assessing the quality of R&D claims.
Between 2019 – 20, the estimated value of inaccurate claims was in excess of £300m. To review and identify the “poor reporting and fraudulent claims”, HMRC has brought in 100 new investigators.
HMRC is also restricting the amount SMEs can claim to £20,000+ 300% of a company’s total Pay as you Earn (PAYE) and National Insurance Contributions (NICs) liability. This restriction will apply to all accounting periods beginning on or after 1st April 2021.
HM Treasury suggesting compulsory Professional Indemnity Insurance for tax advisers
Recently, more and more “R&D Experts” are coming into the market. These businesses often lack the expertise and specialist knowledge of the tax legislation which can lead to poor claims and ultimately involve lengthy enquiries from HMRC.
In what is possible partly as a result of the above HMRC is currently consulting on plans to raise the standards In the UK tax advisory market to ensure that all advisers meet the expected high standards. The consultation includes plans to make professional indemnity insurance compulsory for tax advisers in a bid to protect taxpayers.
Your R&D Claim is in safe hands with Ascendis
An HMRC enquiry can add another layer of stress and worry to running a business so we would always suggest enlisting the help of a specialist, who is able to carefully prepare a claim for you that can stand up to scrutiny.
At Ascendis your claim will be prepared by an experienced Chartered Tax Adviser with valuable experience in dealing with HMRC and can ensure that any claim meets HMRC guidelines and maximises the amount you are able to claim.
We have a strong track record of delivering successful claims for our clients.
Whether your business needs help submitting a robust claim or you are worried about an enquiry from HMRC, we are happy to discuss how we can help you secure the best outcome.