Bristol-based specialist research and development tax credit consultancy ForrestBrown has launched a service to help businesses caught up in a drive by government tax officials to prevent abuse of the system costing hundreds of millions of pounds.
HMRC has stepped up efforts to combat fraudulent behaviour over the past few months in the wake of an increase in suspect R&D tax credit claims. It says it has prevented £300m of fraud linked to the claims. 
As a result ForrestBrown, which became the UK’s largest business R&D tax credit consultancy last year just five years after its launch, has started a support service aimed at businesses, accountants or specialist advisers facing an HMRC inquiry having already submitted a tax credit claim.
The service also makes it even clearer what information HMRC expects to receive in support of a claim.
The government is also reintroducing the PAYE and NIC cap on the SME payable credit which was abolished in 2012, bringing in a new online service and providing new software guidance.
ForrestBrown director Jenny Tragner, who is a member of HMRC’s R&D consultative committee, said: “R&D tax credits are a valuable source of funding that helps businesses to grow and prosper. They are vitally important to driving business innovation.
“The last six months have seen a seismic shift in HMRC’s approach to R&D tax credits following reports that it had identified and prevented £300m of fraud linked to a R&D tax credit claim.
“Given HMRC’s significant efforts to ensure high standards and consistency, businesses and advisers alike may face a claim being challenged where before it was not. We’re therefore ready to engage with businesses who may need our support.”
Jenny said ForrestBrown had previously provided this service to several businesses on an ad hoc basis but wanted to formalise it to ensure that the incentive achieves its purpose.
“We understand that anyone facing an HMRC inquiry may feel at risk, and that’s why we are offering our considerable specialist technical expertise to provide peace of mind at a time of considerable stress.
“Furthermore, our long-standing relationship with HMRC means we benefit from policy-level insights, meaning that we know exactly what HMRC are looking for in support of R&D tax credit claims.”
The new service includes a dedicated team of experts that will review R&D tax credit claims prepared by others. They will initially carry out a thorough review of the potential client’s R&D tax credit claim(s) and the correspondence they have received from HMRC.
If they deem the claim to be legitimate, they will guide the business through the inquiry process until a satisfactory resolution is reached.
Unlike its end-to-end R&D tax credit claim service, ForrestBrown charges a time and materials-based fee for this new service. It is one of the consultancy services that ForrestBrown offers businesses, accountants or specialist advisers.
ForrestBrown, which employs around 90 staff, is preparing to take on more than 40 more people this year and expand its tax associate programme as its growth continues following its acquisition last spring by alliantgroup, the premier provider of tax credits and incentives in the US.
