Q&A: R&D relief disclosures - understanding HMRC guidance.

The HMRC guidance ‘Tell HMRC if you’ve claimed too much research and development (R&D) tax relief’ highlights an essential step in ensuring compliance for businesses that have engaged with R&D tax relief schemes.

What is HMRC’s ‘disclosure opportunity’?

HMRC’s compliance activity in relation to R&D tax relief has increased significantly over the last two years; it is estimated that one in five claims have been subject to enquiry. HMRC cannot check every claim however and the disclosure opportunity allows businesses to voluntarily correct R&D tax relief claims if they believe they have claimed too much.

This proactive measure can help to avoid penalties and prevent formal HMRC enquiries. The service is for businesses that wish to notify HMRC and repay any relief which ought not to have originally been claimed. Users must calculate any taxes due along with interest and applicable penalties as...