Enquiry Risk Calculator

What is our Enquiry Risk Calculator?

Our Enquiry Risk Calculator is an online tool designed to provide a quick and simple estimation of the potential risk of an HMRC R&D enquiry associated with your claim.

By analysing factors such as your industry, the strength of your supporting evidence, and the size of your company, this tool serves as a helpful starting point for understanding your claim's risk profile.

Expertise

This tool offers a useful perspective for businesses concerned about R&D enquiries and potential R&D compliance checks, helping you proactively address areas of concern.

However, for complex cases or high-risk claims, consulting an expert ensures compliance with HMRC guidelines.

While the tool provides an initial indication of risk, it is crucial to remember that it is not a substitute for expert consultation.

Professional advice is highly recommended to ensure your claim meets the necessary criteria and avoids triggering an R&D compliance check.

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What factors affect the risk of an HMRC R&D enquiry?

Several factors can increase the likelihood of an HMRC R&D enquiry, including:
Insufficient supporting evidence for your claim.
Operating in industries that are under increased scrutiny for R&D compliance checks, such as software or construction.
Misinterpreting the eligibility criteria for R&D activities.

Using the Enquiry Risk Calculator can help you conduct an initial R&D risk assessment, but it’s important to work with experts to ensure your claim is robust and compliant.

How accurate is the calculator in assessing R&D enquiries?

The Enquiry Risk Calculator provides a helpful starting point for understanding the potential risk of an R&D HMRC enquiry, but it is intended for guidance purposes only.

The tool uses general indicators like industry type, company size, and evidence strength.
While it highlights potential risks, it does not replace a detailed R&D risk assessment conducted by professionals.

For the best results, consult an R&D specialist to address specific risks and ensure compliance with HMRC requirements.

Can I rely solely on the calculator's results to avoid R&D enquiries?

No, the calculator should not be used as the sole method for determining the likelihood of an R&D enquiry. It is designed to provide an overview, but:
Each claim is unique, and HMRC may conduct R&D compliance checks based on additional factors not covered by the calculator.
A detailed review of your claim and supporting documentation is essential to mitigate the risk of an R&D HMRC enquiry.

We recommend seeking professional advice to ensure your claim is both accurate and well-prepared.

What should I do if my risk level is high?

If the Enquiry Risk Calculator indicates a high likelihood of an HMRC R&D enquiry, take the following steps:

Review your supporting evidence to ensure it meets HMRC’s criteria for R&D compliance checks.
Engage an R&D tax specialist to help strengthen your claim.
Consider additional measures, such as improving documentation processes, to reduce your risk of future R&D HMRC enquiries.

Taking these proactive steps can help you avoid potential challenges with your claim.

How can I improve my R&D claim to avoid HMRC R&D enquiries?

To minimise the risk of an R&D enquiry, focus on the following:

Ensure all technical and financial evidence is accurate and well-documented.
Clearly define how your project meets HMRC’s definition of R&D.
Work with professionals who can conduct a thorough R&D risk assessment before submission.

By addressing these areas, you can reduce the likelihood of a costly or time-consuming HMRC R&D enquiry.