Case Study: Defending a Scottish company in an HMRC Enquiry

When a Scottish maintenance company faced the removal of its entire R&D tax claim and a six-figure sum in HMRC penalties, our expert team stepped in. We reviewed the case, rebuilt the technical report, and successfully defended the claim, resulting in a full acceptance by HMRC and complete removal of penalties.

Defending an R&D Tax Relief Claim During an HMRC Enquiry

A Scottish maintenance company found themselves in a difficult position after a prolonged HMRC enquiry into their R&D tax claim recently. By the time they approached us at Innovative Partners, the enquiry had been open for 13 months and HMRC had decided to remove their entire R&D claim. To make matters worse, HMRC had charged almost £200,000 in deliberate penalties, believing the company had intentionally made errors in their submission.

Initially, the client expected to lose the full value of the claim and absorb the penalties, but thanks to their accountants, who were impressed with our previous work, they heard about Innovative Partners and reached out to request our support to appeal the case.

What our expert advisors at Innovative Partners did

Our team immediately took control of the process. We:

• Conducted a detailed review of the original submission and HMRC’s enquiry.

• Identified weaknesses in the original technical report.

• Regenerated a comprehensive, improved technical report that met our rigorous standards.

• Prepared robust responses to HMRC and supported the client through a meeting with HMRC officers.

We also worked closely with the business to understand their operations in depth and to demonstrate that their work involved a significant qualifying R&D project, despite HMRC’s initial reluctance to believe R&D could take place in the maintenance sector.

The result

Our efforts achieved a full acceptance of the R&D claim and a complete removal of the penalty charge. This outcome represented a seven-figure swing in the client’s favour.

Beyond the financial result, our support helped rebuild the client’s confidence in the R&D process. Initially hesitant to apply for R&D relief again, they are now pursuing future claims with our guidance and have become a long-term client for us at Innovative Partners.

Need support with an HMRC enquiry or R&D claim?

Get in touch with Innovative Partners today. Our team is here to help.