Diet Shield and Their Spicy Innovation
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.
HMRC’s Rejection
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.
Our Approach
Faced with this challenge, we 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.
Proving Competence
We began by presenting further evidence into the professional backgrounds of the project leads. Our team compiled evidence of their extensive clinical research, numerous published studies, and significant industry contributions. This wasn’t merely a matter of listing qualifications; we created a detailed narrative of their expertise and demonstrated how their backgrounds aligned perfectly with the project’s needs.
Interpreting ‘Competent Professionals’
Next, we enquired into HMRC’s definition of “competent professionals,” contrasting it with the qualifications and achievements of the employees. We highlighted inconsistencies in HMRC’s interpretation and used their own guidelines to show how the project leaders met the required standards. This involved a careful dissection of HMRC’s criteria and a precise alignment of the project’s scientific advancements with these benchmarks.
Highlighting the Innovation
Our focus then shifted to the innovation itself. We crafted a detailed technical narrative illustrating how Diet Shield’s lip salve represented a significant advancement in nicotine replacement therapy. By demonstrating that the ingredients were selected through a scientific process and represented genuine R&D, we presented a compelling case for the project’s eligibility.
A Major Victory
Our 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.
