What is an R&D tax enquiry?
An R&D tax enquiry is HMRC’s review process to check that a company’s R&D tax claim is accurate and compliant. It is also known as a compliance check.
R&D tax enquiries aren’t necessarily a sign that anything is incorrect. HMRC may simply want more detail about the project, the costs, or how the work qualifies under the R&D guidelines.
During an enquiry, HMRC will ask questions and may request supporting evidence. It may require some straightforward clarifications or could result in more detailed technical and financial discussions being needed. Their aim is to confirm that the activities meet the definition of R&D for tax purposes and that the costs have been claimed correctly. HMRC usually sends enquiry correspondence by letter to both your business and your advisor in the first instance.
If I get an enquiry, what do I need to do?
First of all, don’t panic. An R&D enquiry doesn’t automatically mean anything is necessarily incorrect with your claim. HMRC often ask for clarification or extra detail to understand a claim properly.
If you do receive one, the key steps are:
Read the letter carefully: HMRC will outline what information they need. This could be more information about the project, technical explanations, cost breakdowns, or evidence of the work carried out.
Respond clearly and professionally: Enquiries have deadlines. Your response should directly address each question, provide the right evidence, and explain the R&D activities in plain and helpful language.
Gather supporting documentation: This may include project notes, prototype specs, testing records, timesheets, invoices, or emails. Anything that helps demonstrate the work and the costs.
Get expert support if needed: An experienced adviser can help you shape a strong response, reduce risk, and manage the conversation with HMRC on your behalf.
An HMRC enquiry can be stressful, but our role is to remove that pressure and guide you through the process with confidence. Our team combines over 20 years of tax legislative expertise with genuine technical understanding of your project, so we are able to identify exactly how and why HMRC has challenged a claim and how best to respond. We take a hands-on, client-led approach, managing the detail, preparing clear explanations and representing your position robustly. This means you’re supported at every stage with practical, informed advice that can make a real difference to the outcome of your enquiry.
The Process
1. Initial Review
You share your R&D claim and any letters you’ve received from HMRC and we’ll take the time to review everything carefully and quickly. The goal is to ensure that you’re not left wondering what is happening.
Our aim at this stage is simply to understand the situation, identify any risks and give you clarity on what the enquiry is really about.
2. Position Assessment
Once we’ve reviewed everything, we’ll talk you through your position in clear, simple terms so you know exactly where you stand.
We’ll explain what HMRC are looking for, what the risks are and what your likely pathway to resolution looks like. It’s important to be aware that the correct resolution for you could range anywhere from withdrawing the initial claim to proceeding all the way to Tribunal.
The aim is to give you practical recommendations that you can take forward.
3. Understanding the Claim
We will then work closely with you to gather anything HMRC may need. Often HMRC will be requesting more technical details about your projects, so it might be revisiting the case studies with your technical team. It could also be project notes, financial costings or other evidence.
This part is collaborative and relaxed: we ask questions, you tell us about the work, and together we build a strong, clear picture. If it helps, we can visit you and your team in person to get to know you better.
4. Initial Response
Once we have everything we need, our team gets to work preparing the full technical and financial response.
We take care of the heavy lifting, which will include the drafting of the letters and handling all communication with HMRC.
You’ll be kept up to date throughout, so you never feel left in the dark.
5. Responding to HMRC
If HMRC come back with further queries, we manage all the back-and-forth rounds of correspondence on your behalf. Whilst they might continue to in written form, often the quickest way to resolution is to get your technical team to speak directly with HMRC. If this occurs, we will be there to prepare you in advance and support your through the process.
We’ll explain what they’re asking, agree the right approach with you, respond and aim to ultimately negotiate a fair outcome.
6. Appeals, negotiation and resolution
Where appropriate, we can escalate the case through alternative dispute resolution (ADR) or, if required, support you all the way to a formal appeal or Tribunal. Throughout this process we’ll explain each step clearly, outline the risks and likelihoods, and help you make confident, informed decisions.
Want to discuss your options?
- How long will it take to resolve the enquiry?
- It really depends. Some enquiries are wrapped up quickly with a single, clear response, while others take longer if HMRC ask follow-up questions or want more detail. Some will depend on which unit within HMRC is asking the questions, HMRC’s current workload and whether you have a dedicated case worker or not varies depending on the unit.
What we can say is that we’ll keep the process moving, respond promptly, and update you at every stage. So even if the exact timeframe is uncertain, you’ll always know what’s happening and what to expect next. - How much of my time will it take?
- Each case is unique, however our process is designed to ensure that we minimise your time where possible. Some enquiries will only need a handful of clarifications, while others may require a bit more input, especially if HMRC ask for deeper technical detail.
So while we can’t give a precise number of hours upfront, our goal is to minimise disruption and make the process as smooth and time efficient as it can be for you.
- How do you structure your fees?
- We don’t believe in standard pricing, every enquiry is different and our fees reflect the level of support required. We can promise that our fees are always flexible, fair and transparent. What matters most is that you receive value for money and expert guidance to support you in navigating what can be a stressful process.
If you’d like a tailored estimate, book a chat with our team and we’ll happily provide one. - What are the outcomes of the enquiry?
- Outcomes can vary, and there isn’t a single guaranteed result.
Some enquiries end with HMRC accepting the claim as it is, while others may lead to adjustments to the number of projects, or costs in the claim. In some circumstances, enquiries may end with the claim being withdrawn and negotiating penalties with HMRC.
What we can promise is that we will be honest with you throughout the process, explain all risks and implications clearly, and work with you to aim to secure the best possible outcome for your business.