High level of claim refusal may deter claimants

More than a third (38%) of technology businesses submitted a research and development (R&D) claim which was initially approved but was later challenged and rejected by HMRC according to research from RSM UK.

The survey of 301 technology businesses with a turnover of over £2m found that 34% submitted claims which HMRC challenged and later declined while 29% submitted a claim that was challenged but later approved.

David Blacher partner and head of media and technology at RSM UK said: ‘The chancellor has emphasised the need to promote growth and innovation in the UK but may struggle to make this a reality without making R&D reliefs more accessible for businesses. While funding for the R&D scheme has been “protected” technology businesses are encountering greater levels of scrutiny from HMRC at a time when they are increasingly dependent on...