Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Research and development negativity

27 March 2023 / Nigel Holmes
Issue: 4882 / Categories: Comment & Analysis , fraud , HMRC , R&D , Investigations
Don’t be so negative

Key points

  • HMRC’s recent crackdown on fraud and error is causing potential R&D claimants to think twice before applying for the relief.
  • HMRC does not follow its own guidance during investigations and is not doing enough to reassure potential applicant companies.
  • New regulations mean accountants will need to spend more time on R&D applications and HMRC guidance does not provide sufficient clarity.
  • More changes are coming but it is still a generous relief.

There has been a lot of negativity around research and development (R&D) tax relief ever since HMRC began its crackdown on fraud and error – and it is having a chilling effect.

It was vital that HMRC improved the robustness of the scheme as it is estimated that the level of fraud for R&D tax relief reached £469m from 2021-22.

Fraud doesn’t just harm taxpayers either as innovating companies are only properly rewarded if...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon