R&D Tax Credits - Enquiry Defence

R&D tax credit claims are increasingly subject to scrutiny by both HM Revenue & Customs (HMRC) in the UK and Revenue Ireland in the Republic of Ireland. 

Compliance checks (commonly referred to as “enquiries”) are now a routine part of the R&D landscape, even where claims have been prepared carefully and in good faith.

At Redline, we provide specialist support to defend R&D tax credit claims under enquiry, acting as your technical and tax advisor throughout the entire process. Our objective is to justify your claim, minimise disruption to your business, and achieve a timely and fair resolution.

A compliance check is a formal review by the tax authority into the validity of an R&D claim. This may involve:

• Requests for further technical explanations of the projects claimed;
• Detailed questioning of cost methodologies and financial allocations;
• Interviews with your technical staff; and
• Challenges to eligibility, scope, or substantiation of activities
   

In both the UK and Ireland, authorities now expect high-quality technical narratives, contemporaneous evidence, and consistent financial logic. 

Claims that are poorly documented, over-stated, or inconsistently explained are significantly more likely to be adjusted or rejected.

Redline offers structured end-to-end enquiry management including:

We begin with a full review of your original claim, identifying:

• Technical eligibility risks;
• Gaps or weaknesses in project technical narratives;
• Cost categories most likely to be challenged; and
• Consistency with current HMRC or Revenue Ireland guidance.
   

This allows us to develop a clear strategy before engaging in discussions with the tax authority.

We will then work with your technical and finance teams to assemble:

• Detailed explanations of scientific or technological uncertainties;
• Clear articulation of advances sought and achieved;
• Collation and presentation of supporting project records; and
• Reconciled cost calculations aligned to statutory guidance.
   

Our focus is on presenting credible evidence, not generic or templated responses.

We manage all correspondence and meetings with HMRC or Revenue Ireland on your behalf, including:

• Drafting and submitting formal written responses;
• Handling follow-up questions and clarifications;
• Supporting and participating in technical discussions with the authorities; and
• Negotiating where scope or interpretation is disputed.
   

This ensures communications remain technically accurate and consistent.

Where adjustments are proposed, we advise on:

• Whether positions should be defended, refined, or conceded;
• Financial impact assessments; and
• Future claim structuring to reduce ongoing risk.
   

Our goal is not only to resolve the current enquiry, but to improve the sustainability of future claims.

Many compliance checks arise from claims that were:

• Prepared internally by finance teams without specialist R&D input, or
• Submitted by third-party advisors using aggressive or poorly supported methodologies.
   

Redline regularly supports businesses who are no longer confident in the quality or integrity of their original claim. 

In these situations, we can provide an independent technical assessment and, where necessary, restructure the defence strategy to protect the company. We can also advise on corrective actions, amendments, and future claim approaches to reduce risk of non-compliance.

R&D compliance checks are not purely tax exercises. They are fundamentally about science and technology interpretation when compared against the R&D for tax guidelines, combined with precise financial treatment. 

We defend claims that are technically legitimate and factually supported. Where elements of a claim cannot be substantiated to the required standard, we provide pragmatic, commercially focused advice to minimise risk rather than prolong disputes unnecessarily.

Compliance checks can be very time-consuming and distracting for claimants. We manage the process end-to-end, limiting internal demands to focused, efficient information requests rather than prolonged back-and-forth correspondence.

For clients whose claims we prepare, compliance defence is a core part of our service offering. We stand behind the work we deliver and remain fully engaged if a claim is reviewed in subsequent years.

An R&D compliance check does not mean a claim is wrong, but it does require careful, professional handling to resolve. With Redline, you gain a specialist partner who understands both the technical substance of your innovation and the regulatory expectations of HMRC and Revenue Ireland.