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

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...