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Will R&D changes help to plug HMRC’s tax black hole?

22 May 2023 / Justine Dignam
Issue: 4889 / Categories: Comment & Analysis , HMRC , R&D , Companies , Income Tax
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Plugging the tax black hole

Key points

  • HMRC is looking to reduce the number of spurious R&D claims received and clawing back moneys for claims that have already been made.
  • Since October 2022 the number of requests to review R&D claims is 130% higher than the total number of claims from 1 January 2019 to 30 September 2022.
  • It is sometimes easier for companies to withdraw small R&D claims than to go through an HMRC enquiry.
  • HMRC is not being scientific about which submissions it selects for investigation.
  • HMRC could be hugely underestimating the number and value of valid R&D claims.

Research and development (R&D) legislation is changing. HMRC is getting tougher and looking to reduce the number of spurious claims received. This includes both future claims and clawing back monies from claims that have already been paid. Like other areas of tax R&D is in the spotlight with the government looking...

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