HMRC’s new focus on compliance for R&D

It looks as though HMRC is honing in on accuracy surrounding Research & Development (R&D) claims.

Following its latest meeting Research & Development (R&D) Communication Forum (RDCF) one of the key takeaways was focused on efforts to reduce error and fraud within the regime.

HMRC reported that around 90% of R&D claims are now being processed within 40 days, exceeding its target of 85%. This is encouraging news for businesses that rely on R&D tax relief as part of their cash flow planning. Although more complex claims may still face additional scrutiny, the overall trend points towards improved operational performance and a more efficient claims process.

The forum also highlighted an interesting shift in claim activity. Claim numbers have fallen from around 61,000 to 51,000, while the total value of support provided has increased from £7.7 billion to £8.2 billion.

R&D is a valuable tax relief for many businesses. Contact the tax team at Monahans for more information.