How We Resolved an R&D Enquiry Through Technical Clarity and Strategic Engagement

The Enquiry Process

The enquiry began on 12th March 2025 through email correspondence with the R&D Tax Credits Compliance Team. The initial information request from HMRC was extensive and included a substantial request for supporting documentation at an early stage.

Streets Innovation fully support compliance checks, however the volume and granularity of information exceeded what would be required to establish eligibility.

During the process, certain aspects were requested on several occasions, despite the evidence previously being supplied, in the original R&D report submitted to HMRC and in prior responses, which led to delay and administrative burden for the company.

The Core Issue: Technical Interpretation

The key difficulty surrounding the resolution of this compliance check was ensuring the technological uncertainties encountered by the team were precisely and accurately outlined in a manner that both competent professionals and a layperson could align with the supporting legislation and CIRD manuals.

The projects involved the development of complex healthcare software systems that significantly improve clinical outcomes and reduce risk in occupational health settings. 

Queries surrounded the work undertaken, with comparisons to contrasting developments in adjacent fields of science that were indicative of a failure of comprehension. However, after several rounds of written communication, it was evident there was an impasse as technical misalignment remained. 

Requesting Direct Dialogue

Streets Innovation formally requested a meeting between HMRC and the competent professionals responsible for the projects in October 2025.

The meeting was granted for November 2025.

Direct technical discussion proved pivotal, as it allowed the competent professionals to explain their development work whilst enabling Streets Innovation to align its scientific and technological advances and uncertainties with the relevant guidance and CIRDs. This included why existing baseline systems were insufficient and why the work could not be achieved through routine development practices. 

Following the meetings, the client and Streets Innovation submitted a structured written response addressing the remaining points raised by the officer. 

The Outcome

HMRC subsequently confirmed agreement with our position, and all projects were accepted as qualifying R&D. 

The resolution was achieved by maintaining technical accuracy, challenging inefficient requests where necessary, and ensuring developments that legitimately advance the wider field of science through the resolution of scientific or technological uncertainty were not misrepresented. 

Key Takeaways

This case highlighted several critical points for businesses undertaking qualifying R&D and their R&D tax advisers:

• Enquiries are increasingly detailed and process-driven.
• Information may be required in various formats to enable HMRC to assess the qualifying activities accurately.
• Complex technical work can be misconstrued; however, a discussion with a competent professional can expedite the education and understanding process.
• Direct engagement with HMRC officers and competent professionals can significantly improve the efficiency and progress of a compliance check and its outcome. 

How This Affects You

Qualifying R&D withstands scrutiny when it is presented clearly and supported confidently. When enquiries arise, a structured approach and technical depth are essential to ensure that legitimate development activity is recognised appropriately.

Businesses should be prepared to provide granular detail, respond thoroughly to information requests and outline the business’s advancements and uncertainties to HMRC’s officers.