Fundamentally, the Compliance team exists to protect RCK’s clients and colleagues by making sure what we produce as a firm is fair, correct, and well-evidenced. At RCK, the team take responsibility for the claim process, as well as acting as a hub for tax-technical expertise and dealing with any correspondence with the tax authorities.
From a day-to-day perspective, the team meet up each morning and review the list of newly prepared work for review. These reviews take place at the end of the financial calculation stage, when the written evidence is prepared to support a claim, then again at the end, when everything is ready for submission to HMRC or to the client.
Additionally, the team are responsible for monitoring the deadlines faced by ourselves and our clients, whether that’s submission deadlines to HMRC, correspondence deadlines we’ve agreed for clients, or any additional deadlines that have been agreed for sending to HMRC; the team review these and have a catch up every day to ensure that nothing falls through the cracks.
As standard, the team gets involved in the key review points for any given claim, however, we are available to be called up at any stage of the claim process, so that our colleagues have access to the full technical expertise of the team. The team’s involvement in a claim can begin at the very start, in an introductory call, particularly if the client has any concerns about compliance, or if there’s anything unusual or different about the claim, that our consultants feel our expertise would be a help in preparing.
The Process
A Compliance success story
A large IT firm submitted an R&D claim with another advisor, that resulted in enquiry. The advisor began to support the claim, but charged additional fees, and eventually chose to cease to act. This resulted in penalties for the client after the Inspector refused the claim and the agent provided no response.
We picked up the enquiry work and resolved the historic claim with a compromise agreement with HMRC. We also picked up the two subsequent years that were also in enquiry and negotiated a new acceptable methodology with HMRC. The nature of the R&D was challenged, but we defended it and are in the process of bringing the long running (3 years+) enquiry to a conclusion. We have also prepared a claim for the subsequent years and are working with the Inspector to ensure that these are prepared in such a way that they can be approved without needing another year of enquiry process.
The Team
Meet the compliance team – who, with extensive experience and expertise within their field, will ensure that your interests and security are properly safeguarded.
Microsoft has announced a £2.5 billion investment into the UK to boost AI development. The funding will go towards new datacentres, GPUs, and training over 1 million people in AI skills, strengthening the UK’s digital infrastructure and workforce. This move positions the UK as a key player in global AI innovation, provided the right policies and partnerships support it. Lord Iain McNicol welcomed the news, highlighting the importance of large-scale investment for growth and skilled jobs. We encourage technology companies to explore how R&D tax relief can help them benefit from opportunities created by this investment.
Want to submit an R&D tax relief claim but sit within the defence industry? This article outlines the process we follow at RCK for defence clients, taking into account the security protocols and confidentiality requirements in this sector.
Sophie Spells, Head of Legal, Data and Compliance at RCK Partners, reflects on the importance of proper governance and outlines key steps for businesses looking to scale with governance at the forefront.
