HMRC R&D claims arrests

HMRC, Research & Development,

You’ll have seen from our earlier articles that R&D claims were suspended earlier this year, and have now resumed with additional checks in place.

Eight people, including a tax agent, were arrested on the 12th October as part of a wider investigation. These people are thought to have been involved in over a hundred fraudulent R&D claims for in excess of £16million.

No wonder payments were suspended!

Since April 2022, more than 1,600 claimants have been asked for additional information to support an existing claim. More than 80% of these claims have been rejected as a result of the enhanced checks.

Designed to reduce the risk of fraud, the enhanced checks have lengthened the processing time for R&D claims from 28 days to 40 days. HMRC say they’re now processing 80% of claims within the 40 day timescale.

Further changes set to be introduced from April 2023 aim to further reduce the level of fraud relating to R&D claims. To be considered, claims will have to be notified in advance, submitted digitally, be endorsed by a named senior officer of the company and include details of any agent who has advised the company regarding the claim.

You can find out more about R&D claims here, or get in touch if you’d like to chat them through with us.

We can help you decide whether your work is likely to be eligible for a claim, help you quantify the costs you can claim, prepare and submit an R&D claim on your behalf, or work with any external advisor you may already have a partnership with, to ensure your claim is prepared, submitted and repaid as quickly and smoothly as possible.

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