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The randd team supported two connected companies, Rotamec Ltd and CovElec Ltd, through HMRC R&D tax relief enquiries, providing specialist enquiry defence support across both cases. Operating in the mechanical engineering sector, both companies were undertaking technically complex R&D activity and required clear, well-evidenced submissions to satisfy HMRC scrutiny.
In the case of Rotamec, HMRC’s ISBC department opened a compliance check in November 2025. The randd team led the enquiry defence process, preparing a detailed response covering both the technical basis of the projects and the associated qualifying costs. This involved setting out the scientific and technological uncertainties involved, alongside a clear breakdown of the financial position in line with HMRC requirements.
A closure notice was issued on 12 January 2026 confirming that no amendments were required to the company’s tax return. The claim was therefore upheld in full, with all five projects and all associated costs accepted. The enquiry was resolved in around three months, reflecting both the strength of the original submission and the effectiveness of randd’s enquiry defence approach.
The position with CovElec was more involved. The original R&D claim had been prepared by a previous adviser and, on review, was found to be fundamentally flawed. The evidence submitted to HMRC did not adequately support the R&D activity being claimed, placing the claim at risk during the enquiry process.
Experts at randd were engaged to support the enquiry defence and carried out a full technical review. Working closely with the company through a series of detailed discussions, randd developed a clearer understanding of the work undertaken during the period. From this, four distinct qualifying R&D projects were identified, replacing the single project originally submitted.
The randd team then managed all correspondence and discussions with HMRC, presenting a revised and properly supported position. All four projects were accepted as qualifying R&D, securing the company’s entitlement to tax relief and successfully resolving the enquiry despite the weaknesses in the original submission.
Taken together, these cases highlight randd’s role in HMRC enquiry defence: supporting robust claims through scrutiny, and strengthening those that require a more fundamental review to reach a successful outcome.
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