HMRC Information on claiming Research & Development (R&D) Tax Relief

 Research & Development  tax relief supports companies that work on innovative projects in science and technology.

R&D tax relief has very high levels of incorrect claims. The care sector is being targeted by some agents who are persuading businesses to make ineligible claims.

These agents often promise ‘100% success’ rates and guarantee ‘no HMRC investigation’. Once a claim is paid, these agents take their fee from the claim and often become unreachable once HMRC begins investigating.  

Illustrative case study

Claire and her family run a local care home and are contacted by an agent who advises they are entitled to R&D relief. The agent has minimal knowledge of their business, but after asking a few questions, suggests some business activities will qualify, such as the sensory garden that the home had built during the year. Claire doesn't know much R&D relief, but the agent tells her similar claims have been successful. The agent submits a £12,000 claim which is paid out to Claire within a few weeks. Claire pays the agent £3,800 in fees and keeps £8,200.

A year later, HMRC informs Claire that her claim wasn't eligible, and she must pay back the £12,000 plus interest. Claire attempts to contact the agent, but they won't reply to her emails and the phone number doesn't work anymore. Claire is left out of pocket as she must pay HMRC the full amount she received plus interest.

If you are contacted by an agent offering to make an R&D claim on your behalf, don’t give them your HMRC log-in details, review R&D tax relief guidance for information on R&D eligibility. To find out more about claiming R&D tax relief, please look at the R&D Guidelines for Compliance

For further help nd support, email HMRC at [email protected] 

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