Finding the Goldilocks Zone when claiming your R & D tax credits
Goldilocks tried three bowls of porridge , three chairs and three beds before she found the Goldilocks Zone . HMRC won ’ t give you three attempts to get your claim right !
Yet a high proportion of incorrect claimants are overstating their R & D and leaving themselves vulnerable to lengthy HMRC enquiries .
Whilst maximising the value of your claim seems a reasonable thing to do so as not to miss out on vital cash , maximising it without strong evidence of qualifying activity is a risky undertaking , which means that instead of a cheque HMRC might send you a letter triggering a lengthy and unpleasant enquiry and a long delay of your claim .
Whilst HMRC offers exhaustive guidance on the legislation , it is not always straightforward when it comes to putting all the figures together . The definition of R & D is broad , however , it ’ s not that generous and only includes specific activities which meet strict criteria .
Whilst there are intentionally fraudulent claims being submitted to HMRC , there are cases when inaccuracies and errors creep up in totally eligible claims . It is also common for businesses to unwillingly repeat the same mistakes in subsequent years until the numbers in their claim grow , along with the risks of inquiry and penalties . If R & D is not your daily job , a serious misunderstanding of either the costs calculation or technical evidence preparation processes can jeopardise the claim and leave you with less cash and more stress .
This is why you should think carefully before going solo , and why you really shouldn ’ t underestimate the value of specialist R & D tax advice .
Our Free Audit can identify inaccuracies to optimise your claims , to maximise your benefit and minimise your risk of an investigation .
We are at the forefront of our industry , sitting on multiple HMRC committees to raise standards and our reputation is paramount . We do far more than just process claims : we guide you through your claim preparation process identifying activities , calculating expenses and putting it into the correct wording to ensure that your claim will stand up to HMRC ’ s scrutiny .
We are here to give you confidence around R & D so you can improve your claims and use the credit gained to invest in the future .
More information and testimonials can be found on our website www . randdtax . co . uk
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