HMRC R&D disclosure service

The cost of research and development (R&D) tax reliefs to the UK government has risen significantly in recent years from £3bn in 2014-15 to £7.5bn in 2022-23. This growth reflects the UK’s commitment to fostering innovation and economic growth through these valuable tax incentives.

However with such significant sums involved HMRC is increasingly focused on ensuring these reliefs are claimed accurately and in accordance with legislation. This article explains HMRC’s new R&D disclosure service a critical development for companies that may have previously overclaimed R&D tax relief.

HMRC is obligated to ensure that R&D tax relief is claimed correctly under the R&D expenditure credits (RDEC) scheme and the small and medium size enterprises (SME) R&D tax relief scheme (for accounting periods starting before 1 April 2024) or the new merged RDEC scheme and the enhanced relief for R&D intensive SMEs (ERIS) (the latter two...