Definition
Tribunal R&D cases are judicial decisions of the First-tier Tribunal Tax Chamber and the Upper Tribunal on disputed research and development tax relief claims. Where HMRC and a claimant cannot reach agreement, the company can appeal to the tribunal. Recent decisions including Hadee Engineering, Quinn (London) Ltd, Flame Tree Publishing Ltd and Strictly Money Ltd have clarified how the BIS Guidelines apply to specific fact patterns. Tribunal decisions are publicly available and directly influence HMRC's enquiry approach.
How HMRC defines it
HMRC references significant tribunal decisions in updates to the CIRD Manual and in its published Guidelines for Compliance GfC3. First-tier Tribunal decisions are binding between the parties but not on other cases; Upper Tribunal decisions are binding precedent. HMRC's Litigation and Settlement Strategy, published on GOV.UK, sets out its approach to disputes.
Practical example
An SME's claim is rejected by HMRC on the basis that the competent professional was not properly identified and that the uncertainty claimed was routine. The company appeals to the First-tier Tribunal, which reviews the technical evidence and restores part of the claim. The decision is published and adds to the body of guidance available to advisers and claimants.