The number of claims for research and development (R&D) tax relief ‘corrected’ by HMRC’s fraud investigation service has quadrupled according to data obtained in response to a freedom of information request by Price Bailey.
The anti-fraud unit amended 2 440 claims for R&D corporation tax relief in 2024 (as of 12 November 2024) nearly four times the number in 2023 (670). The claims have been amended under FA 1998 Sch 18 para 16 rather than as a result of formal enquiries.
Gemma Thake tax partner at Price Bailey said: ‘What seems to be happening in many cases is that HMRC is making blanket determinations about claims based on risk profiling of the claimants rather than acting on specific information about individual claims which is what it should be doing.
‘It is widely accepted that HMRC needs to reduce fraud in the claims...
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