Diet Shield: Overcoming HMRC’s R&D Enquiry
Wilby Jones helped Diet Shield secure £4,390.37 in R&D Tax Credits and successfully defend an HMRC enquiry. Discover how this was overturned.
Diet Shield embarked on a daring mission to help smokers quit in an unconventional and novel way. In order to achieve this groundbreaking innovation, they sought to secure R&D Tax Relief for their project.
However, when HMRC refused to acknowledge the project as R&D through an initial enquiry, it brought their efforts to a halt.
Wilby Jones’ response led to a complete turnaround from HMRC, securing crucial financial support for Diet Shield.
Company
Diet Shield
Industry
Healthcare
Service
R&D Tax Relief
Quick Summary
Secured in R&D Tax Credits
Challenge
HMRC issued an enquiry letter to Diet Shield, rejecting it on the grounds that the project leads weren’t “competent professionals.
- HMRC’s enquiry put the entire R&D tax credit claim at risk
- Questioning the competence of project leads jeopardised crucial funding
- Potential financial loss could impact ongoing innovation and growth
Solution
Faced with this challenge, Wilby Jones knew that defending Diet Shield’s claim required more than just presenting technical data—it required a strategic approach to demonstrating the true competence of the project leaders.
- Conducted a thorough review and documentation of project leads’ qualifications and roles
- Prepared detailed evidence highlighting the professional expertise and hands-on involvement of the team
- Crafted a compelling narrative to clearly demonstrate competence to HMRC inspectors
Impact
This outcome not only secured crucial financial support for Diet Shield but also confirmed their innovative approach to health, allowing them to continue with their groundbreaking work.
- Successfully defended the R&D claim, unlocking vital funding
- Reinforced the credibility and expertise of Diet Shield’s project leaders in the eyes of HMRC
- Enabled uninterrupted progress on innovative health solutions without financial disruption
Who was the client?
Diet Shield, a trailblazer in health innovation, embarked on a daring mission: to help smokers quit in a novel and unconventional way.
Their approach? A lip salve infused with chillies designed to create a burning sensation on the lips, acting as a deterrent to smoking. This wasn’t just a unique concept, it was built on the idea that Capsaicin, the active compound in chillies, could trigger a dopamine response to curb nicotine cravings.
With a blend of Carolina Reaper Chilli Oil and Beeswax, Diet Shield was creating something entirely new in the realm of health products. Confident in their groundbreaking innovation they sought to secure R&D tax relief for their project. But when HMRC refused to acknowledge the project as R&D through at initial enquiry, it brought their efforts to a halt.
What challenges did our client face?
Several months after Diet Shield submitted their claim, HMRC sent an enquiry letter challenging the application. The rejection was based on the assertion that both project leads, were not “competent professionals.” HMRC questioned their qualifications and their ability to assess the scientific advancements required for the project. This challenge jeopardised not only the tax relief claim but the future of Diet Shield’s innovative work.
What was the result?
Wilby Jones’ comprehensive response led to a complete turnaround. HMRC acknowledged the validity of Diet Shield’s R&D claim and recognised the significant contributions of the project. The rejection was overturned, and the company received the full tax relief they had originally sought.
This outcome not only secured crucial financial support for Diet Shield but also confirmed their innovative approach to health. The successful resolution of their claim allowed them to continue their groundbreaking work and reaffirmed their commitment to pioneering new solutions in the health industry. At Wilby Jones, we’re proud to have played a role in this success story. It was a reminder of why we do what we do: championing innovative companies and ensuring their contributions to the industry are recognised and rewarded. We’re here to help you turn challenges into opportunities, unlocking the full potential of your innovations.
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