HMRC still rejecting valid R&D claims, says CIOT

HMRC’s handling of research and development (R&D) tax relief compliance continues to result in valid claims being rejected says the Chartered Institute of Taxation.

The institute has written again to HMRC about the issue following an exchange of letters over the summer. It welcomes HMRC’s acknowledgement that its handling of some R&D claims has not met its own standards and that the department is working to improve its training and assurance processes. However the CIOT notes that ‘legitimate claims are still being rejected and the underlying policy objectives of R&D tax relief to encourage investment in innovation and economic growth continue to be undermined as businesses are put off claiming relief to which they are entitled’. It urges HMRC to ‘reduce the volume compliance approach until caseworkers are properly trained with an appropriate understanding of R&D’.

Ellen Milner CIOT’s director...