While we work to make sure that all R&D tax relief claims are maximised and compliant, you may have previously helped a client submit a claim without our assistance.
Without a detailed knowledge of the guidance, it is possible that there may have been some errors in previous claims that you are discovering as you learn more about the schemes.
Changes to the schemes also bring a wave of errors as those with less familiarity struggle to keep pace with the changes.
We would always advise seeking professional help before compiling a claim, but there is a course of action for any historic misfiling.
Making a disclosure
If you have filed incorrect information to HM Revenue and Customs (HMRC), you may have been hoping that the mistake would go undetected, especially if the claim was approved.
However, it is important to act quickly, as tax returns can be amended within 12 months of filing should the need arise.
When the time limit has passed to amend the return, it will be necessary to use the voluntary disclosure service.
Mistakes in an R&D tax relief claim are not always a sign of ill intent and are more likely a result of not understanding the guidance.
The incorrect filing may be the result of your client providing you with inaccurate information or being too generous with their allotment of time or resources.
As soon as you are aware of an issue with a claim, it is best to make use of HMRC’s disclosure service.
By utilising the disclosure service, your client will agree to pay back any relief they were not entitled to, and they may have to pay some interest or penalties depending on the error.
It is worth noting that the penalties will be lower if a client voluntarily discloses the misfiling before they get discovered through HMRC’s checks and enquiries.
Any refunds that are required to be paid to HMRC will need to be done within 15 calendar days of the disclosure being filed.
If this falls outside the realm of possibility, it may be possible to request an extension provided the full amount is paid within 12 months.
Understandably, filing a disclosure may place you and your client under greater scrutiny in the future.
To ensure that you and your clients are not in the position of needing to file disclosures, we would advise seeking professional help from those who truly understand R&D tax relief.
Avoid embarrassing errors in your relief claims, contact our team today.
