What are the outcomes of an R&D claim that has errors?

If any errors are detected during the enquiry process of your R&D tax credit claim, the HMRC inspector may conclude that the claim cannot continue and will therefore be invalid. In this situation, the claim will usually need to be reviewed and corrected before it can develop further.

If you have encountered a similar situation, the following steps should be taken:

1. Review the R&D tax credit claim carefully to identify where the inaccuracies or unsupported documentation appear
2. Seek support from a trusted and reputable R&D tax credit advisor with experience of HMRC enquiries in the R&D sector
3. Amend the areas of the claim where errors or misunderstandings have occurred
4. Prepare and submit a corrected and compliant version of the R&D tax relief claim
5. Maintain clear and transparent communication with HMRC throughout the process
6. Respond promptly to any further information requests to keep the enquiry moving forward

An incomplete or inaccurate claim may lead HMRC to determine that the claim is unsuccessful. In some cases, the inspector may also consider whether the errors arose through carelessness or negligence. This assessment can influence whether penalties are applied alongside any amendment or rejection of the R&D tax credit claim.