Our HMRC Enquiry Support Services are available to any company undergoing an HMRC enquiry into a tax relief claim. We provide support for R&D claims, and Capital Allowances. PSS goal is to defend all eligible expenditure within the claim by handling communication with HMRC on your behalf, saving you time and effort.
Contact us today, and we’ll review your enquiry and assist you with the outcome.
Capital Allowances offer tax relief on long-term capital expenditures, unlike repair-related revenue expenses. These allowances help reduce taxable income.
Available for spending on plant and machinery, including commercial property developments, acquisitions, fit-outs, and refurbishments. Since October 2018, this also includes structures and buildings (SBAs).
Not automatic—must be claimed in a tax return. No time limit as long as the asset is owned and used in the business.
Tax relief on plant and machinery is 18% (main rate pool) or 6% (special rate pool), depending on the item. Main rate includes furniture and telecoms; special rate includes electrical systems and ventilation. SBA expenditure gets a 3% straight-line rate.
If a person or company builds, buys, or renovates a property that is going to be used commercially, then a certain amount of that cost can be claimed back as Capital Allowances. Up to 45% of the purchase price and up to 100% of the refurbishment cost can be claimed back. Capital Allowances can be claimed on expenses such as office fittings, lighting and electrical equipment, as these expenses are essential components for the business to operate. For example, for a holiday home to operate they need beds, a kitchen, and lighting, etc. These expenditures can be claimed back via Capital Allowances.
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You may be able to claim Corporation Tax relief if your project meets the HMRC definition of R&D. Many businesses don’t realise they qualify for R&D tax credits or that they are not claiming their full entitlement.
Learn MoreAll commercial property owners who are UK taxpayers may be eligible to claim Capital Allowances tax relief. Your eligibility depends on several criteria.
Learn MoreAdd value and increase client loyalty by partnering with an R&D tax specialist. We are driven to provide exceptional service and achieve the best possible outcome.
Learn MoreThese services are designed to help manage financial processes, ensure compliance with regulations, and provide accurate financial information for decision-making.
Learn MoreThese services are designed to help manage financial processes, ensure compliance with regulations, and provide accurate financial information for decision-making.
Learn MoreOpen communication is at the heart of our process. We collaborate closely with our clients, keeping you informed at every stage. Transparency is key to building trust and fostering a successful partnership.
There is no set timeline for the resolution of an HMRC enquiry; it will continue until all reasonable concerns of the Inspector have been addressed. As a result, PSS’s enquiry defence fee structure is primarily contingent upon the enquiry being successfully concluded. However, typically we see claims resolved within 6-9 months.
At the earliest opportunity, you should reach out to your R&D services provider, or independent experts, to ensure you understand all information that HMRC has requested and to discuss the potential risks at each stage. Timely responses, presenting the technical elements of the claim within the boundaries of the R&D guidelines, are essential for the successful resolution of any enquiry.
The best-case scenario will result in the case officer accepting that the projects detailed in your claim are eligible under the R&D guidelines, resulting in the total amount of qualifying expenditure that was submitted being approved. In the worst case, the projects will be deemed not eligible, even after appeal. In those cases, none of the qualifying expenditure will be approved and the Inspector will consider penalties for careless or inaccurate submission of tax returns.
Our experience varies on a case-by-case basis, and the result is dependent on the underlying quality of work put forward. Where clients have submitted a claim to HMRC in good faith, even if the Inspector concludes against allowing the claim, our experience is that we can work with HMRC to agree on a way forward that does not result in the payment of penalties, provided the claimant commits to understanding and abiding by HMRC guidance going forward.
A distinct process, Fraud Investigation Service (FIS) letters are similar to enquiry letters, although they tend to be more focused on the financial costs incurred in comparison to R&D enquiries. PSS’s Claim Resolution Service is open to assist with both R&D enquiries and FIS letters.
Absolutely, PSS’s dedicated Capital Allowances team works closely with the Compliance team on all Capital Allowances enquiry responses.
When faced with an enquiry, our experienced Capital Allowances team guides you through the process, ensuring timely responses and adherence to Capital Allowance Tax relief guidelines. Our fee structure is contingent upon successfully resolving the enquiry, providing you with peace of mind. We examine claim documents, conduct scoping calls, and manage correspondence with HMRC, aiming for the best outcome. Whether it’s gaining approval for qualifying expenditure or addressing specific concerns, we’ll support you in navigating these complexities with confidence.
Inspectors are obliged to consider applying penalties in any situation where the claim value is reduced over the course of the enquiry. Penalties can be up to 30% of the tax due in cases where the submission is deemed to be careless, between 20% and 70% for submission of deliberately incorrect information, and between 30% and 100% where the claim is deemed to have been deliberately incorrect and concealed.
Penalties can be reduced or mitigated entirely depending on multiple factors, including open and timely responses to HMRC and assisting in calculating any changes in tax due. PSS will advise on all stages of enquiry response with a view to reducing the risk of incurring penalties, where it is reasonable and possible to do so.
The clear presentation of services, transparent pricing details, and accessible contact information make it easy for users to understand the offerings and get in touch. The inclusion of client testimonials or case studies adds credibility and reassurance, showcasing the positive impact of the accounting services provided.
The Accounting website provides a user-friendly and informative platform for individuals and businesses seeking professional financial services.
The Accounting website provides a user-friendly and informative platform for individuals and businesses seeking professional financial services.
The clear presentation of services, transparent pricing details, and accessible contact information make it easy for users to understand the offerings and get in touch. The inclusion of client testimonials or case studies adds credibility and reassurance, showcasing the positive impact of the accounting services provided.