A Coventry-based engineering consultancy has been given a £25,000 penalty after wrongly claiming for research and development (R&D) tax credits. Teksolutions-Inc Ltd and the Commissioners for Her Majesty’s Revenue and Customs, TC/2018/00696 shows the importance of being able to properly substantiate an R & D tax credit claim.

 

Too often we see R and D tax credit claims that are just a calculation, with no supporting documentation on critical aspects of the claim, like what the project was, what the advance in science and technology was, what the uncertainties were that needed to be resolved and crucially, why the answer was not readily deducible by a competent professional in the field.

 

Following this case, this typo of approach to claims is going to lead to heavy penalties.