Grazer Learning case
HMRC opened a case against Grazer Learning after being uncomfortable with its software claim where the qualifying project is described in terms of functions and features.
HMRC needs to understand what code was developed in software claims, and why this code is considered technically challenging to develop. In this tribunal, it was felt that “the work carried out …. at the behest of the Appellant was no more than a novel utilisation of the existing technology in this area or an adaptation of that existing technology, which was readily deducible by a competent professional working in the field”.
We’ve seen this type of challenge taken to the tribunal before where HMRC ultimately won that case. HMRC believes it will be successful at tribunal and if your claim report is not clear, it’s likely to come back with queries that could delay receipt of your claim benefit.
The Grazer Learning case also shows the dangers of not preparing for tribunal too. Witness statements that would have supported the claimant’s case were disallowed due to incorrect and late filing of the documents. This shows how challenging this stage can be and we strongly believe you must ensure that your claim does not reach this point.
We offer a free claim review to companies that can check for these issues and highlight any areas where HMRC might open an enquiry.