Helping Healthy Supplies successfully resolve an HMRC enquiry

Prolonged HMRC enquiry

Healthy Supplies Ltd, a company dedicated to offering a wide range of health foods and products, has been claiming R&D tax relief for several years to help fund its innovative software development projects. Despite their significant advances in creating a bespoke e-commerce platform and stock management system, Healthy Supplies’ most recent claim was subject to an HMRC enquiry. The process was particularly frustrating as it seemed HMRC was not fully engaging with the detailed evidence provided, leading to a prolonged and stressful experience. This situation was exacerbated by the economic climate, making the financial uncertainty even more challenging.

Specialist expertise broke deadlock

ForrestBrown provided invaluable support to Healthy Supplies throughout this challenging period. Their expertise was instrumental in identifying all eligible R&D activities and ensuring that the claim was meticulously prepared.

When the HMRC enquiry was initiated, ForrestBrown’s role became even more critical. The ForrestBrown team managed the enquiry process, communicating with HMRC to address any questions and concerns. ForrestBrown’s deep understanding of R&D tax relief legislation and its proactive approach ensured that the enquiry was handled efficiently. The final response to HMRC, which was thorough and well-articulated, played a crucial role in resolving the enquiry favourably.

Positive outcome provided confidence

With ForrestBrown’s expert guidance, Healthy Supplies successfully navigated the HMRC enquiry, receiving the original claim in full and providing the confidence to claim for R&D planned for future years. Funds were reinvested into further innovation and growth, reinforcing the company’s commitment to continuous improvement. The resolution of the HMRC enquiry without any penalties or reductions in the claim amount provided additional peace of mind and confidence in their R&D activities.

The partnership with ForrestBrown not only helped Healthy Supplies overcome the complexities of the R&D tax relief process but also highlighted the importance of expert support in navigating such challenges.

This collaboration has empowered Healthy Supplies to focus on its core mission of delivering high-quality health products while leveraging financial incentives to drive innovation. The experience also underscored the value of persistence and thorough documentation in dealing with HMRC enquiries, offering hope and reassurance to other companies facing similar challenges.

Moreover, the financial relief provided by the successful R&D claims has been crucial, especially during the cost-of-living crisis. While Healthy Supplies was fortunate not to rely solely on R&D tax relief to operate, the funds have significantly supported its ability to reinvest in the business and continue innovative work.

This case highlights the critical need for government support for SMEs, particularly in challenging economic times, and the importance of a fair and logical approach from HMRC in handling R&D tax relief claims.