How to Respond to an HMRC R&D Enquiry
Your response to an HMRC enquiry can significantly impact the outcome. Follow these golden rules and avoid common mistakes to give yourself the best chance of success.
Golden Rules for Responding
Following these principles will help ensure a professional, effective response.
1. Respond Within the Deadline
The standard deadline is 30 days from the date of HMRC's letter. Extensions are possible but must be requested before the deadline expires, with a valid reason. Never ignore an enquiry letter.
2. Be Professional and Factual
Use clear, technical language. Avoid emotional or defensive responses. State facts, not opinions. Reference specific projects and evidence.
3. Answer What's Asked
Address each of HMRC's questions directly. Don't volunteer unrelated information. Keep responses focused and relevant. Structure your response to match HMRC's questions.
4. Support Claims with Evidence
Documents are more persuasive than assertions. Provide contemporaneous evidence where possible. Cross-reference to supporting materials. Create a clear evidence index.
5. Involve Your Technical Staff
HMRC wants to understand your R&D work. Your technical staff can explain what challenges they faced, why solutions weren't readily deducible, and how they resolved uncertainties.
Common Mistakes to Avoid
These errors can seriously damage your position. Make sure to avoid them.
Ignoring the Letter
HMRC will proceed without you, usually resulting in full rejection of the claim plus potential penalties.
Providing Excessive Documentation Without Structure
Sending everything you have without organisation makes HMRC's job harder and yours more difficult. Structure your response clearly.
Contradicting the Original Claim
Your response must be consistent with your original claim narrative. Contradictions raise red flags and damage credibility.
Making New Claims Within the Response
An enquiry response is not the place to claim additional projects or costs not in the original claim.
Admitting to Errors Without Understanding Consequences
If you believe there may be errors, take professional advice before making admissions. The way errors are disclosed affects penalty levels.
Attending Meetings Unprepared
If HMRC requests a meeting, prepare thoroughly. Technical staff should be briefed on what to expect and how to present their work.
How Innovation Plus Handles Enquiries
Our structured approach ensures nothing is missed and your response is professionally prepared.
Immediate Review (24-48 hours)
We review your enquiry letter and original claim documentation to understand what HMRC is questioning, the strength of your position, any potential vulnerabilities, and the best response strategy.
Strategy Development
We create a tailored response strategy based on the specific questions asked, available evidence, technical complexity, and HMRC unit involved.
Evidence Gathering
We work with your team to compile technical documentation, staff records and qualifications, financial evidence, and contemporaneous project records.
Draft Response
We prepare a comprehensive response that addresses each HMRC question, presents evidence clearly, uses appropriate technical language, and maintains consistency with original claim.
Client Review
You review and approve the response before submission. We explain our approach and reasoning.
Submission and Correspondence
We submit the response and manage all subsequent correspondence with HMRC until resolution.
Meeting Support (If Required)
If HMRC requests a meeting, we prepare your technical staff, attend alongside you, and help present your case professionally.
Want Professional Help with Your Response?
Our team has successfully handled hundreds of HMRC enquiries. Let us help you craft the strongest possible response.