HMRC Behavioural Questions
1. Please confirm you have read and understood the Penalties and Human Rights
Factsheets?
2. How did your company first find out about the R&D tax relief?
3. Was it always the company's intention to claim for R&D tax relief when undertaking the claimed project?
a. If not, what prompted the decision to make the claim?
4. Was it the company's intention to claim for R&D tax relief or was it initiated by the R&D agent?
5. Please confirm who the R&D agent was.
6. How did you go about selecting the R&D agent you used to make your R&D Claim?
7. What research did you undertake to ensure that they were suitably qualified?
8. Did they contact you or did you contact them?
9. When did the R&D agent contact you about making a claim?
10. What did the R&D agent tell you about R&D tax relief, making a claim and why it was applicable to your company's activities?
11. Did the R&D agent explain or refer to the Guidelines on the meaning of Research and Development for tax purposes published by the Department for Business, Energy & Industrial Strategy (commonly referred to as the BEIS Guidelines)?
12. Prior to the return being submitted were you able to understand the requirements of the R&D tax relief?
13. Did this R&D agent prepare the whole of the claim?
14. What knowledge did you have about R&D tax relief prior to your first contact with the agent that prepared your R&D claim?
15. Please confirm whether, before the claim was submitted, you had read and understood the guidelines on the meaning of Research and Development published by the department for Business, Energy and Industrial Strategy, commonly referred to as the BEIS guidelines?
16. Did you, at any point prior to the claim be submitted, check HMRC's guidance or contact HMRC if you were unsure of anything to do with R&D relief?
17. Did you obtain advice about your R&D relief claim from your usual accountant or anyone else (other than your R&D agent).
a. If so, what advice were you given and by whom?
18. If you did obtain advice from someone other than HMRC, how did you check whether the party was competent to provide this advice?
19. What information did your R&D agent ask for prior to the claim being submitted?
20. What information did you provide to your R&D agent about the project before the claim was submitted?
21. What documentation did your R&D agent ask for prior to the claim being submitted?
22. What documentation did you provide to your R&D agent before the claim was submitted?
23. Did the company view any report generated by your R&D agent before the claim was submitted?
a. Did the company approve the report?
b. Did the company disagree with or question any of the report?
24. Did your R&D agent explain the different categories of qualifying expenditure prior to submitting the claim?
25. What records were used to calculate the Qualifying expenditure in the claim?
26. If staff time and staff members involved were estimated how was this done?
27. Did you check/approve the computation before the claim was submitted to HMRC?
28. What actions did you take to ensure the claim was accurate before it was submitted?
29. Who actually submitted the Corporation Tax return containing the R&D claim to HMRC?
a. Did you provide them with the authority to submit the claim?
30. Please provide a copy of the contract between the company and its R&D agent.
31. Please provide us with all of the correspondence (emails, letters, notes of calls, etc.) between the company and its R&D agent.
32. Are there any exceptional circumstances you would like us to consider when we are determining a penalty charge?
Paul Rosser that's nothing... you ever been on the wrong side of a non-dom enquiry? I used to have the list of questions - but given the recent changes - thankfully no longer required... rdrm23080 for a taster
MD at KPL Hydro
2dIf you are doing R&D you should know exactly what went in to it. From the coloured pens to the end of it.
Associate Director at Jon Preshaw Tax Ltd, specialists at resolving tax disputes and investigations
3dHMRC’s view would be that providing their penalty information leaflet protects taxpayers against “self incrimination” but that is very questionable. I would generally also advise against answering these questions Paul Rosser , a bespoke written representation addressing “behaviours” will usually be much better. Any unrepresented or inadequately represented taxpayer is at HMRC’s mercy here to a far greater extent than should be the case.
So what am I? I am fascinated by innovation, I am amazed at what other businesses do and I am able to help them prepare robust R&D Claims and grow their business.
3dI like question 18. It suggests that HMRC are a competent source of information about R&D Tax Relief!! What advice will they provide? Nil, nothing nada, zip! The typical response is "we can't give advice." "You just need to read CIRD and BEIS!"