Ocushield's Dhruvin Patel
Optical manufacturer Ocushield was one of the thousands of companies that received tax breaks for their innovation work reportedly being chased by HMRC to pay the money back.
Ocushield received £49,000 in 2022 for work on a portable device that would project light, which looked like daylight, while filtering out shorter wavelength blue light.
In January 2023, HMRC informed founder and optometrist Dhruvin Patel that a compliance check on his claim found similar products already in existence.
HMRC was reassessing all past research and development tax relief claims after underestimating the level of error and fraud over many years with some companies abusing the system.
Fortunately, Patel’s ‘persistence and belief in our innovation paid off’ and 18 months later, the company was cleared and spared from paying the money back to HMRC.
Patel signalled his support for the other companies ‘embroiled in similar battles’ and ‘caught up in blanket audits aimed at targeting fraud within the system’.
‘This victory not only validates our commitment to pushing boundaries but also underscores the importance of innovation in today's competitive landscape,’ he said.