Taxation logo taxation mission text

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

HMRC elite unit ‘corrects’ 2,100 R&D claims

03 September 2024
Categories: News

HMRC’s fraud investigation service (FIS) amended 2 100 research and development (R&D) tax relief claims in 2022 and 2023 using powers in FA 1998 Sch 18 para 16 according to data received in response to a freedom of information request from Price Bailey. The FIS issued 2 860 letters querying claims totalling around £137m which suggests that more than 73% of claims queried were later amended.

Gemma Thake tax partner at Price Bailey said: ‘HMRC is only supposed to use its powers to amend tax returns in very specific and limited circumstances. They must be simple and straightforward corrections where HMRC has specific information. What it cannot do is make a blanket determination about a claim based on the sector of the claimant for example which seems to be what has happened in many cases.

‘While there is common acceptance that fraudulent claims should...

If you or your firm subscribes to Taxation.co.uk, 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 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon