It is widely acknowledged that the R&D tax schemes provide valuable support to companies, reducing corporation tax payments or providing a cash injection.
However, the scheme has become a target for fraud and abuse, with several companies now claiming for costs that do not qualify through the schemes.
Stamping out misuse of R&D tax credits has become a top priority for HMRC, with the introduction of many new caseworkers to review claims and clamp down on unscrupulous submissions.
HMRC has been quick to ramp up their scrutiny of the R&D tax credits scheme, recently announcing that they are pausing some R&D tax payments whilst they investigate irregular claims. There will be some delays in normal processing times, to prevent abuse of the relief.
If you submit a claim that is inaccurate, inflated, or fraudulent then you may be liable to a penalty. HMRC states that “The majority of R&D relief claims are genuine and will be unaffected, but for irregular claims there will be some delays to our usual processing times. This is to ensure we prevent abuse of the relief”.
Now is a good time to think about reviewing your R&D claim process, to ensure that you are receiving the best advice. Many companies place too much trust in their accountants and so-called specialist firms to process their claims for them, without ensuring they are receiving the best advice and the claim accurately reflects their R&D activities. With this extra level of scrutiny and the changes planned for April 2023 are you sure your claim will not come under scrutiny by HMRC?
Gateley Capitus are happy to work with you on your next R&D claim or review your previous claims and provide detail of any areas of concern.