R&D Disclosure Facility

Following the recent launch of the R&D Disclosure Facility, see how our team of R&D experts at Price Bailey can support you...

Research and Development (R&D) tax relief provides valuable financial benefits to companies undertaking innovative activities. However, mistakes can happen, and there may be occasions where a business has overclaimed R&D relief. In such cases, the R&D Disclosure Service offers a mechanism for companies to disclose these errors to HMRC, correcting their claims and paying any outstanding tax or penalties.  

The R&D Disclosure Facility was launched on 31 December 2024 following much anticipation and its promised introduction “by the end of the year” in the 2024 Budget.

Overclaiming R&D tax relief can have adverse consequences for your business, including fines, interest charges and business disruption. Missteps in calculating eligible expenses or failing to disclose accidental overclaims can lead to penalties, investigations and repayment demands.

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Our dedicated R&D tax relief and tax disclosure specialists can provide comprehensive support to guide your business through the disclosure process with HMRC. With extensive experience in handling complex tax matters, we will ensure your overclaim is corrected, liaising directly with HMRC on your behalf and help to minimise penalties and interest.

We can support you with:

  • R&D tax claim reviews – identifying overclaims or missed criteria
  • Accurate calculations – ensuring you pay only what is owed for the periods still assessable
  • HMRC liaison – handling disclosures, negotiations and queries with HMRC directly
  • Minimising penalties by clearly explaining the mitigating factors to HMRC

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R&D tax relief disclosures can be challenging with risks like penalties or paying tax for years that HMRC no longer has time to assess. By partnering with Price Bailey, you can gain access to in-depth expertise, a proven track record in R&D disclosures, and comprehensive support from start to finish. We will help you mitigate risks, minimise penalties and ensure your business remains in full compliance with HMRC requirements.

Read some FAQs regarding the R&D Disclosure Service below…

What if my overclaim was unintentional?

If your overclaim was unintentional, we can support you in using the R&D Disclosure Facility to correct your error. Voluntarily disclosing unintentional overclaims generally results in lower penalties compared to situations where HMRC identifies the error first.

Can I still amend my tax return instead of disclosing?

You can only amend your tax return if the time limit for doing so has not expired – normally within 12 months of the filing deadline.

How long does the disclosure process take?

Once the disclosure is submitted, HMRC will aim to respond within 30 days. This may be with acceptance of the disclosure, or HMRC could request for additional information. In rare cases, this response may be a rejection of the disclosure if not properly prepared in accordance with the terms of the facility.

What if my overclaim was intentional?

If the overclaim was deliberate, the R&D Disclosure Facility is not open to the company.  However, we can advise and assist the directors in making a voluntary disclosure under HMRC’s Contractual Disclosure Facility.

What if I can’t pay everything at once?

If you cannot pay the full amount immediately, the company can request additional time to settle the payment.

Have a question about the R&D Disclosure Service? Contact our expert team below...

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