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HMRC's new R&D disclosure service - How can you support your clients

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Author: Tom Mason

Have any of your clients unintentionally overclaimed R&D tax relief in recent years?

Perhaps you’ve onboarded a brand-new client to your accountancy firm and noticed a discrepancy in their accounts, or maybe a long-standing client’s past claims might not have been entirely accurate.

HM Revenue and Customs (HMRC) has recently introduced a new disclosure service that allows you to assist your clients in addressing these errors transparently, minimising penalty liabilities and reducing the risk of further investigations.

Why has HMRC introduced this service?

This initiative comes in response to rising concerns about errors and fraudulent claims in the R&D tax relief system.

HMRC’s analysis of claims from 2020/21 revealed that a significant portion of R&D tax relief claims, particularly from SMEs, were either incorrect or fraudulent.

With the estimated cost of these errors reaching over £1.1 billion, HMRC is now taking a firmer stance on ensuring compliance.

Who can use this service?

The disclosure service is aimed at businesses that may have unknowingly overclaimed R&D relief and are now outside the standard amendment window for their Corporation Tax return.

Accountants are also eligible to submit the disclosure forms on behalf of their clients.

However, any organisations that have deliberately submitted fraudulent claims will not qualify to use this service and may face serious consequences.

How can accountants assist clients with the disclosure process?

The disclosure process requires detailed calculations of any overclaimed relief, as well as key company details such as the Unique Taxpayer Reference, SIC code, relevant accounting periods, and an explanation of the error.

If your client needs to submit a disclosure form, they will likely require your assistance in ensuring all of the information is accurately prepared and submitted.

Prevention is better than cure

Errors in R&D claims often arise from a lack of technical expertise or resources during the preparation stage.

At randd uk, we specialise in providing non-competitive R&D tax relief support tailored specifically for accountants.

By partnering with us, accountants can ensure their clients’ claims are robust, accurate, and fully compliant from the outset – minimising the risk of future disclosures and costly investigations.

What should you do next?

If you’re supporting clients with historic R&D claims or want to ensure future submissions are fully compliant, our team of specialist R&D tax consultants is here to help.

Contact randd today to ensure your clients’ R&D tax claims are expertly prepared from the start, eliminating the need for future disclosures.