What is HMRC’s role in R&D tax credits?

Being responsible for R&D tax relief, HMRC’s role is to issue guidelines and to safeguard the R&D tax initiative by ensuring that every successful claim is compliant. 

The guidelines and the rules set by HMRC are reviewed periodically, meaning policy and legislation changes are typically updated annually. Major changes are usually introduced in order to cater to adhere to industry needs and advancements. 

Following R&D tax credit guidelines, companies or consulting agents create the necessary documentation that is submitted directly to HMRC. The HMRC will then analyse and check submitted reports before deciding whether to approve, query or class the claim as unsuccessful with the possibility of penalties.