HMRC’s role here is to issue guidelines, definitions, and the rules that everyone follows when preparing and submitting an R&D tax credit claim. These are reviewed periodically, which means if you were involved in an R&D application ten years ago, the process will likely have become more rigorous and robust. HMRC adapts to changing needs, especially understandable in an area concerned with advances for so many industries.
Following those guidelines, company’s or specialised agents create the documentation to apply for the R&D tax credits, which goes to HMRC. Their regional departments will analyse and check the submitted reports before deciding whether to approve, query or class the claim as unsuccessful with the possibility of penalties.