COMPLIANCE

At Harmoney Consulting Group, our compliance team is dedicated to safeguarding our clients and colleagues by ensuring that all work produced is fair, accurate, and well-documented. We take full responsibility for the review process, serve as a hub for tax-technical expertise, and manage all correspondence with tax authorities. Our compliance and review team operates independently from our delivery team, differing from the more common peer review processes.

Our team examines each claim from a tax inspector’s perspective before submission, enabling us to anticipate and address potential questions from HMRC. This proactive approach not only reduces the risk of enquiries but also streamlines the process for any that do arise.

Reviews are conducted at the submission stage, once the written evidence of R&D is prepared, financial assessments are calculated, and the complete submission package is finalised. 

Our Compliance Team

The Compliance Team at Harmoney is dedicated to protecting our clients by ensuring that all work produced is accurate, fair, and thoroughly substantiated.

Our in-house team operates independently from the delivery process, ensuring an objective and thorough review of every claim. We handle all communication with HMRC, providing clients with peace of mind and confidence in the process.

Every submission is carefully assessed by our compliance team. This approach helps identify and address potential questions before they arise, significantly reducing the likelihood of enquiries and making the resolution process faster and more efficient if needed.

HMRC Enquiries

Facing an HMRC enquiry regarding your R&D tax relief claim can be daunting. With our deep understanding of both sides of the enquiry process, Harmoney Consulting Group provides expert support to defend your claim confidently.

An R&D Tax Enquiry is a request from HMRC for additional information or clarification on your R&D tax relief application. Such enquiries aim to prevent overclaiming and fraud. They can range from simple requests for more information to challenges regarding the R&D status of your work under the law. In some cases, HMRC may reject claims, impose fines for inaccuracies, and demand repayment of previously awarded R&D tax credits with interest. Therefore, it’s crucial to work with a trustworthy R&D consultancy to ensure your claims are robust and compliant.

HMRC may initiate an enquiry for various reasons, including changes in company circumstances, issues with documentation, or significant increases in the value of your R&D tax credit claim compared to previous years. They may also focus on specific sectors or technologies as a precautionary measure. Common triggers for HMRC enquiries include:

• Insufficient explanation of the scientific or technological advancements achieved.
• Lack of clarity regarding uncertainties encountered during the R&D project.
• Inadequate evidence supporting why certain information wasn’t readily available to qualified experts.
• Inconsistencies or errors in the R&D tax credit claim.
• Concerns arising from the tax return.
• Exceeding permissible expenditures as recorded in company books.
• Incorrect allocation of costs for subcontractors and third-party personnel.
• Attributing R&D expenditures to personnel not directly involved in R&D activities.
• Omission of all personnel involved in R&D operations.
• Errors in tax return filing or amendments.
• Insufficiently qualified personnel evaluating the R&D project’s compliance.

Due to a recent increase in fraud and misuse of R&D tax credits, HMRC has bolstered its internal compliance team to scrutinise claims more thoroughly. While many enquiries are routine spot-checks or requests for additional information, others may stem from concerns about fraudulent claims. An HMRC enquiry can lead to significant payment delays, reduced claims, or penalties. Therefore, it’s essential to have your claims reviewed by experts like Harmoney Consulting Group. Our team can help minimise the duration and impact of the enquiry process on your business.

Additionally, HMRC may focus enquiries on certain sectors, industries, or regions as part of its risk management strategy. Consequently, companies of varying sizes and industries may experience differing levels of scrutiny at different times. By partnering with Harmoney Consulting Group, you can ensure that your R&D tax credit claims are robust, compliant, and well-prepared to withstand HMRC’s review process.

For more information on our compliance services and how we can support your business, please contact us.