Claim to Minimise the Risk of an HMRC Enquiry
As HMRC continues to tighten its scrutiny of R&D tax credit claims, businesses must be more diligent than ever in preparing and submitting accurate, well-documented applications. A robust R&D tax credit claim not only increases the chance of a successful outcome, it significantly reduces the likelihood of a time-consuming and costly enquiry.
In this article, we explain what makes an R&D claim “robust” and how your business can avoid common pitfalls that often trigger HMRC’s attention.
Why Is HMRC Increasing R&D Enquiries?
In recent years, HMRC has ramped up its compliance checks in response to rising levels of inaccurate, inflated, or fraudulent claims, particularly from unregulated or inexperienced advisers. With new legislation introduced in 2023 and evolving guidance continuing into 2025, scrutiny is now part of the standard process, especially for first-time claimants or those making unusually large submissions.
What Makes an R&D Claim Robust?
A robust R&D tax credit claim is one that is:
- Accurate – It correctly identifies eligible activities and costs under HMRC’s definition of R&D.
- Detailed – It includes well-written technical narratives that clearly explain how the work meets the criteria for advancement and uncertainty.
- Well-supported – It is backed by thorough, contemporaneous records of the work undertaken.
- Prepared by specialists – It is compiled by professionals who understand both tax legislation and the science or technology involved.
Common Weaknesses That Trigger HMRC Enquiries
- Vague or generic project descriptions
If your technical narrative lacks specificity or uses overly broad language, HMRC may question whether the work truly qualifies. - Inadequate records
Claiming significant amounts without supporting evidence (e.g. timesheets, invoices, technical specs) is a red flag. - Over-claiming costs
Including routine activities, commercial work, or exaggerated subcontractor costs is a common error that can lead to rejections. - Misunderstanding eligibility
Not all innovation qualifies. For example, adapting off-the-shelf software or cosmetic product changes often fall outside of R&D guidelines.
How to Prepare a Defensible R&D Claim
Here are five steps to protect your business from unnecessary HMRC scrutiny:
- Keep Detailed Project Records from Day One
Maintain documentation of problem statements, testing, failed iterations, and staff involvement throughout the year. - Use Clear, Structured Technical Narratives
Explain how each project involved scientific or technological uncertainty, and how the solution was not readily deducible. - Justify All Costs
Allocate time and expenditure only to those activities that directly contributed to overcoming the identified uncertainties. - Collaborate with Sector Specialists
Work with advisers who have both tax and technical expertise, they can challenge assumptions and enhance credibility. - Review Your Claim Before Submission
A second opinion can be invaluable. Even seemingly minor issues can raise unnecessary questions from HMRC.
How R&D Enquiries Can Help
At R&D Enquiries, we specialise in supporting UK businesses through every stage of their R&D tax credit journey – especially when faced with complex HMRC questions. Whether you want to avoid enquiries altogether or need expert support in responding to one, our team is here to help.
✅ We build fully defensible claims
✅ We handle HMRC enquiries on your behalf
✅ We help you recover what you’re entitled to, confidently and compliantly
Need Support With an HMRC R&D Enquiry?
If you’ve received an enquiry letter – or simply want peace of mind before submitting your next claim – speak to our team today.
🔍 Contact R&D Enquiries for expert advice and practical support.