RCK has launched an Enquiry Defence Service, available to any company who needs support in corresponding with HMRC during a compliance check or other tax investigation.
What is the service?
RCK offers access to our sector specialists in resolving queries from HMRC, whether formal section 36 enquiries, “nudge” letters, or simple clarifications requested by an Inspector. Our support covers all forms of HMRC engagement, although, one area that we have found particularly useful to our clients is support with R&D tax relief.
The case for an Enquiry Defence Service:
R&D tax relief is a valuable incentive offered by the government to encourage businesses to invest in innovation. While R&D tax relief is designed to support businesses, it is not uncommon for HMRC to launch enquiries to ensure the claims align with the defined criteria.
HMRC enquiries can be time-consuming, resource-intensive, and stressful for businesses, especially SMEs with limited expertise in dealing directly with HMRC. RCK Partners has a wealth of experience in working with HMRC, both collaboratively in ensuring that Inspectors have all of the information that they need, and also in defending claims against enquiry when HMRC takes a more formal route. While there is always scope for differences of opinion, invariably we have found that engaging positively with HMRC results in the best outcomes for our clients, and avoids the spectre of penalties through demonstrating the care and attention taken to coming to the right result.
How can RCK help?
Expert Assistance: The Enquiry Defence Service provides businesses with access to tax professionals experienced in handling enquiries and liaising with HMRC. These experts have an in-depth understanding of the legislation and requirements surrounding these tax disputes, enabling them to effectively address HMRC’s queries and challenges.
Reducing the Burden: Dealing with an HMRC enquiry can be overwhelming for businesses, diverting their focus and resources away from their core activities. The Enquiry Defence Service aims to alleviate this burden by taking on responsibility for the day-to-day handling of the enquiry process, allowing businesses to concentrate on what they are expert at, only drawing on the business to make sure that the position being reflected to HMRC is accurate and fair.
Mitigating Risks: The whole process of interacting with HMRC can be daunting for businesses, as they may face potential financial implications if the enquiry results in increased tax, or reduced benefits. The Enquiry Defence Service assists businesses in presenting a robust defence, ensuring that they are well-prepared and equipped to address any concerns raised by HMRC, thereby minimising the risk and magnitude of unfavourable outcomes.
Increased Confidence: By providing businesses with expert guidance and support throughout the enquiry process, we seek to instil confidence in businesses to pursue their valid R&D activities and make legitimate claims for tax relief. This, inline with government objectives, promotes a culture of innovation, encouraging businesses to invest in R&D initiatives without fear of undue scrutiny or repercussions. We often find that on conclusion of an enquiry, a good relationship has been formed with the relevant inspector, meaning that following years can be submitted with confidence that they will be accepted by HMRC unchanged, given that they are prepared in line with what has been agreed during the enquiry process.
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