Why do R&D tax credit enquiries happen?

Since 2022, HMRC have been stricter on their policies and frequently open more enquiries to determine the authenticity of a claim and to address potential anomalies. 

These are the most common reasons for an enquiry into your R&D tax credit claim:

• Compliance check to determine eligibility
• Incomplete documentation
• Inaccurate claims
• High expenditure claims
• Industry specific issues 
• Previous issues

When facing an enquiry, HMRC will typically communicate the reasons and what they need in order to verify your claim.  Click here to understand how you can prevent making some of the common mistakes that lead to enquiries.