If your client has an R&D tax claim rejected, there are several routes they can take to appeal and resolve disputes with HMRC.
These include:
- An internal review by HMRC
- Referral to arbitration
- Referral to the First Tier Tribunal (FTT).
However, HMRC has now introduced another option for those seeking to appeal a claim – a review by the Solicitors Office and Legal Services (SOLS).
The role of SOLS
You may have come across SOLS before, but your client may not have.
As a brief introduction, SOLS provides all department legal services to HMRC and the team includes tax specialists, solicitors and a vast support team.
Its role is to support HMRC in interpreting financial legislation and enforcing it, which includes determining whether applications for tax reliefs and credits are valid and allowable.
SOLS handles many of the most high-value cases facing HMRC, so it may be particularly suitable for your client if they have made a high-value claim.
How does it work?
Your client can request a review by SOLS via HMRC within 30 days of a decision, either by email or through their online account, if they are unsatisfied with the outcome of an internal review and do not want to take the dispute to the FTT.
A member of the team, typically a solicitor or tax professional, will review the relevant legislation and your client’s claim, to make a decision based on their specialist interpretation of the law.
The person reviewing your case will be independent on your caseworker and will offer an impartial service.
The decision of the initial review or dispute will either be:
- Upheld
- Overturned
- Varied
This is a fairly new service compared with the other routes to resolving a dispute with HMRC, meaning SOLS is currently facing a backlog of matters.
However, it is still certainly a viable route for clients that need this additional support but want to avoid taking the dispute to the FTT, which can take a significant amount of time.
If you need advice on dealing with HMRC enquiries and appeals for your clients’ R&D tax claims, please contact our team.
