The mistakes made by Diagnostax cost our business tens of thousands, don't let them destroy your business! We hired Diagnostax (now trading as AI Tax Diagnostics Ltd) to handle our R&D tax relief claims over several years, specifically because they positioned themselves as specialists in this area. Their advice was unequivocal: we were told our work clearly qualified as R&D, and this was reinforced by the fact that their team included someone with prior experience working in HMRCβs R&D division. On that basis, we trusted their judgement. While we are highly experienced in our own technical discipline, we do not specialise in R&D tax legislation. That is exactly why we engaged a consultancy rather than attempting to interpret the rules ourselves. We relied heavily on their guidance around eligibility, risk, and likelihood of enquiry. We were also told that only a very small percentage of claims (under 5%) were investigated, and that the firm had dealt with very few enquiries historically, all of which had supposedly been resolved successfully. Our experience has been very different. Our claims were selected for a routine HMRC investigation, and we subsequently learned that the investigation rate was significantly higher than we had been led to believe. Despite repeated assurances from Diagnostax that the claim was sound and defensible, HMRC has now rejected the claim. The outcome has been extremely damaging for our business. We are facing a substantial repayment demand running into tens of thousands of pounds, alongside the stress and disruption of a long enquiry process. To compound matters, Diagnostax are now refusing to refund their fees for the years in question, arguing contractual fine print while disclaiming responsibility for the advice that led us to submit the claims in the first place. We engaged this firm in good faith, relying on their expertise to navigate a complex and high-risk area of tax. In our case, the advice proved unreliable, the risks were understated, and when the claim failed, accountability was notably absent. Based on our experience, we would strongly caution other businesses considering Diagnostax / AI Tax Diagnostics for R&D tax advice.
Contacts & Location
π Address: 4 Greek Street, Stockport SK3 8AB, United Kingdom
π Phone: +44 800 101 8317
π Website: diagnostax.co.uk
Reviews
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Dale Comley β ββββ
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Charlie Low β ββββ
We engaged Diagnostax (now AI Tax Diagnostics Ltd) to prepare and submit R&D tax relief claims for multiple years. From the outset, we were advised clearly and confidently that our projects qualified as R&D, and this advice carried particular weight because their team included someone who had previously worked within HMRC R&D. Unsurprisingly, we trusted their judgement. We are experts in our own technical field, not R&D tax legislation, which is precisely why we hired a specialist. We relied on Diagnostax to guide us correctly on qualification, risk, and compliance. We were explicitly advised that fewer than 5% of R&D claims were investigated, and that the company had only experienced two investigations, both of which were resolved in the clientβs favour. This significantly influenced our decision-making and risk assessment. In reality, our claims were subject to a routine HMRC investigation, and we later discovered that well over 20% of claims were being investigated at the time. Despite being repeatedly reassured that our claim was valid and robust, HMRC has now rejected the claim in full. The consequences for us are severe. We are now facing a repayment demand of tens of thousands of pounds, plus the time, stress, and disruption of a prolonged enquiry process. To make matters worse, Diagnostax are now refusing to refund the fees they charged us for those years, relying on contractual technicalities while simultaneously distancing themselves from responsibility for the advice they gave. At every stage, we acted in good faith and relied on professional guidance from a firm that presented itself as an expert in this area. In our experience, that reliance was misplaced. The advice proved unreliable, the risk was materially misrepresented, and when the claim failed, the firm declined to stand behind their work. Based on our experience, we would strongly advise against using Diagnostax / AI Tax Diagnostics to businesses who are seeking competent, accountable R&D tax advice.
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Yamin Ali β β β β β
Excellent consultants that have saved my small business a lot of time and money. Communication is great and I would recommend them to anyone.
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FAQs
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DIAGNOSTAX is located at 4 Greek Street, Stockport SK3 8AB, United Kingdom
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You can contact DIAGNOSTAX at +44 800 101 8317
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