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< Back to Latest News Studies Newsletter: R&D Tax Credits Update (Issue 12)

Talking Tax: December 2022

Author: Adam Spriggs, R&D Tax Director

November has been another busy month for the R&D team. One case that stood out was a new software client who had discovered their R&D claim had no technical backup to defend the submitted figures if the claim was subjected to a HMRC enquiry.

About the claim

Zeal have just finished working with a new software client who had ‘previously claimed’ R&D tax credits, however, the client had recently discovered the extent of their prior claim was simply a figure in their tax return. No technical backup nor breakdown of what costs made that figure up was included. Had HMRC enquired into this claim, it would have been extremely difficult to defend. What’s most concerning is that the claim had been made by their previous accountant who hadn’t explained any of the ‘R&D process’. 

Our team completed the client’s most recent year with full technical backup, detailing the methodology as well as financial breakdown. This led to them claiming more than 3 times than the previous year!

Given the continued focus by HMRC into R&D claims, with the department having over 200 staff checking claims, it’s imperative that full backup and explanation is provided. On top of this, this has demonstrated that doing it right doesn’t necessarily mean that claim values will go down.

For help with making an R&D Tax Credits or defending your claim from a HMRC enquiry, contact Adam Spriggs on adam@gozeal.co.uk