HM Revenue & Customs (HMRC) have launched a campaign to investigate the validity of Research & Development (R&D) claims, challenging the legitimacy of claims made on a company’s tax return.
Thousands of taxpayers have received letters, issued by HMRC’s Fraud Investigation Service that state ‘The claim triggered an alert on our systems and has caused HMRC to believe that you have claimed money to which you were not entitled. Therefore, HMRC has blocked payment of this money, to which we believe you are not entitled.’
The letters come following announcements that HMRC are blocking tax repayments which arise following R&D claims and are issued in advance of impending new legislation to address unscrupulous agents acting in the R&D field.
In many cases, these letters may have been prompted by errors in calculations or technical inaccuracies, without any fraudulent intent.
How M+A Partners can help
If you receive one of these letters from HMRC, please forward it to your usual contact at M+A Partners who will be able to assist in responding to HMRC.