Preparation is key: discover the value that ex-HMRC inspector, Mark Andrew, brings to ForrestBrown clients

In addition to sharing knowledge on legislation and R&D case law, ex-HMRC inspector, Mark Andrew, provides a vital resource for our R&D clients and businesses that have come to us in enquiry. Here’s what clients can expect.

Former HMRC inspector, Mark Andrew, has had a formidable career as a civil servant, spanning almost four decades. Employed initially with the Home Office, he then joined HMRC, where he worked as a tax inspector until 2018.

In 2019, Mark brought his extensive experience to ForrestBrown’s consulting team, which supports clients who have typically had their claim prepared by another adviser, or prepared it themselves, through enquiry. He also provides quality assurance reviews and delivers bespoke consultancy projects. His real-world insights and expertise have proved invaluable to businesses, particularly against the backdrop of a heightened HMRC enquiry landscape.

The HMRC years

For his first 22 years at HMRC, Mark focused on enquiries: first individuals, then larger traders and partnerships, before taking on company investigations, including the high-profile Convergica case, in which £29.5m had been fraudulently claimed in R&D tax relief.

For the last 12 years, Mark was assigned to a specialist R&D tax unit in Croydon, focusing exclusively on HMRC R&D tax credit enquiries. He was responsible for applying the DSIT Guidelines and assessing the competent professional’s (CP’s) capacity to correctly interpret and apply them.

Mark gained vital experience in R&D at HMRC, working on many cases and training and supervising other inspectors in Wealthy and Mid-sized Business Compliance (WMBC). He also advised and worked on R&D enquiries on behalf of the Large Business Directorate. Over the years, he worked with a vast array of businesses and sectors, gaining insights into cutting edge innovations in defence, security, software and media, among others.

Knowledge sharing

It is a fairly normal part of an enquiry by HMRC into an R&D claim for HMRC to ask to speak directly to the CPs. At ForrestBrown, we encourage and facilitate such calls, as they give HMRC the opportunity to hear directly from the CPs, and to ask questions of them. Mark is instrumental in delivering such calls, and in helping our clients prepare for them.

As someone who has made many judgments on whether a CP understands what does and does not qualify for R&D, both with HMRC and at ForrestBrown, Mark knows the importance of a project being correctly articulated to HMRC. Yet it is often the case that while the CP is the technical expert, they may be concerned about how to articulate their project in layman’s terms. This can be a particular challenge if a project is several years old and no longer being worked on day-to-day.

Mark will ensure that any nerves are settled in advance of the meeting. Assuming the role of the HMRC caseworker, he’ll run a mock meeting a few days before to help the client prepare. He’ll run it in the same way as the HMRC meeting, check on a client’s understanding of the Guidelines and present them with a series of questions that they should expect on the day.

It is important that the client understands that HMRC has a job to do, and that the CPs are there to help HMRC do its job. ForrestBrown’s role is to ensure that in the meeting, HMRC is provided with all the information it needs to see that the CPs judgments are made on the correct basis, and that this information comes directly from the CPs.

The aim of the pre-meeting discussion is to provide reassurance, giving the CP the confidence to articulate their R&D. As Mark says: “It’s about helping HMRC to understand the facts. We already believe that the project is R&D from discussions with the CPs. The meeting provides an opportunity for HMRC to have the same discussion so that they can see what we see.”

Translating experience into value

While meetings with HMRC can be daunting, Mark believes that it is always better to have them than to try to agree things by letter. Having dense material explained in detail by the CP can often be the turning point in a compliance check. The better prepared a client is to go into them, the better chance they will have of the claim being agreed in full.

By the time Mark has taken the CPs through the mock call and given feedback, clients feel reassured and confident. They understand why HMRC is doing it, know what to expect and, importantly, that the caseworker is keen to understand their project, not trip them up. As Mark says: “HMRC are doing a valuable job. Once we explain why HMRC have opened the enquiry and gone through the process with them, they feel much more comfortable.”

ForrestBrown – technical excellence

Mark provides a valuable resource that isn’t available as standard from every R&D adviser. He brings unique insights, giving you the confidence to articulate your R&D to HMRC during any compliance check.

His skillset is just one area of expertise that ForrestBrown can bring to your R&D claim. Our multi-disciplinary team is made up of lawyers, tax professionals and industry-experienced technical experts who, together, ensure that your claim is optimised and protected from risk.