A new R&D disclosure facility recently went live on GOV.UK and HMRC has set out its position following the First-tier Tribunal (FTT) decisions in Collins Construction Ltd v HMRC [2024] UKFTT 951 (TC) and Stage One Creative Services Ltd v HMRC [2024] UKFTT 1059 (TC).
New R&D disclosure facility
HMRC’s new R&D disclosure facility went live last month on 31 December 2024. This facility has been designed to make it easier for taxpayers or their agents, to disclose non-deliberate inaccuracies in R&D claims to HMRC.
This facility is for:
- R&D tax reliefs claims which are out of time to amend via the company tax return; and
- Taxpayers who have self-served R&D tax relief claim inaccuracies by mistake, despite taking reasonable care or carelessness.
Any deliberate inaccuracies disclosed will be re-directed to the contractual disclosure facility as tax fraud.
The facility itself is a form on GOV.UK. The accompanying GOV.UK page details the information required to complete the disclosure, which includes uploading computations, explanations and the submission of a letter of offer. The facility also enables taxpayers/agents to self-serve any tax, tax credit repayments, interest, and penalties due. Once received, HMRC will review the disclosure and if the offer is satisfactory a letter of acceptance will be issued. This facility does not require notification of the intention to make a disclosure.
FTT cases
In both these cases, the FTT found in favour of the appellant companies. HMRC has been considering the outcome of the cases and has decided that it will not be appealing the decisions.
HMRC has set out that it recognises clarity is needed on the impact of these cases on open enquiries, appeals, and other claims with subcontracted R&D and subsidised expenditure issues.
HMRC is now considering the wider impacts these FTT decisions have on such claims and aim to publish further guidance on this next month. HMRC is also contacting companies with existing enquiries this month to update them on next steps.
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