The Benefits of Instructing a R&D Tax Relief Specialist

Over the years, I have worked with many companies such as these, yet our paths crossed for one of three reasons:

• They had received a HMRC enquiry into one of their R&D tax relief claims and I was instructed to review the claim and advise on/deal with the next steps.
• Due to HMRC’s heightened compliance focus, they were concerned about the risk of an enquiry.
• Review policies – a clear anti-bullying and harassment policy is important.
• Changes to the R&D tax relief scheme and rules for claiming led to a change in working practices completely.

When working with any company which had prepared claims itself, I would ask the reason why. The answer was not just one of cost, but it was frequently the case that companies would say that they saw little benefit in appointing a third party to prepare a technical narrative that their own competent professionals could write themselves.

Companies feel that their technical teams—those overseeing or directly carrying out the R&D activity—have an intimate understanding of the objectives involved and that it is unnecessary to outsource work which they are fully capable of doing themselves.

Finance teams can take a similar view. They question the value of instructing a third party to prepare a Schedule of R&D Expenditure when the analysis can be completed in-house.

HMRC’s increased compliance activity in checking Claims Notification Forms, Additional Information Forms and the increased number of compliance checks have meant companies viewing R&D activity as “dubious” or “unlikely” are at risk of scrutiny.

In recent years, I have defended the in-house claims of many, highly innovative companies, whose projects clearly met the tax definition of R&D. In most cases, it was clear from the information submitted that genuine R&D activity had taken place, but a check had been undertaken regardless.

Some of these checks may have been random but others may well have been triggered by gaps in the information provided, wording in narratives which may have eroded a caseworker's confidence.

Over the last few years, there have also been many different changes affecting the schemes through which claims are made, therefore affecting the rates of relief and the categories of allowable expenditure.

This, coupled with HMRC`s compliance requirements, and the new, Pilot Targeted Advance Assurance Scheme, to begin in Spring 2026, provide plenty of reason why it is beneficial to instruct a R&D specialist in advance of making a claim.

For more information in relation to R&D tax relief compliance, claim reviews or assistance in dealing with a HMRC Compliance Check, contact Caroline carolinewalton@bexleybeaumont.com  |  07879406013