Following research by international law firm Pinsent Masons and as reported in CCH Daily, the amount of R&D tax credits that are being investigated by HMRC has risen four-fold from £90m to £425m in the past year.
With the amount of R&D tax credits rising to £2.88bn – an increase of 20% on the previous year – Pinsent Masons’ research suggests the higher traffic in claims has resulted in HMRC’s attempts to clamp down on what businesses are including in their R&D applications.
Of the reports, Head of Tax at Sedulo, David Evans, says…
“Over the past few months we’ve seen an increase in the number of clients making claims for R&D relief. HMRC have always acknowledged that R&D has generally been underutilised by businesses, and as a result the Government have been making efforts to promote the relief and simplify the claims process.
Given the recent increase in claims, it’s logical that the amount of claims being scrutinised will increase. As a result, it is more important than ever to use an experienced R&D advisor to assist in making a claim and to ensure the claim is processed smoothly by HMRC.
We continue to have a 100% success rate with the claims we have submitted on behalf of clients, with HMRC typically processing the claims and refunding the client within 4 weeks. If you have questions about R&D or would like some help in making a claim please feel free to get in touch.”