HMRC have quadrupled the number of claims for R&D tax relief ‘corrected’ by its Fraud Investigation Service. According to data obtained by Price Bailey released under the Freedom of Information Act it amended 2 440 claims for R&D corporation tax relief in 2024 (as of 12 November 2024) compared to 670 in 2023.
These claims have been amended using powers under FA 1998 Sch 18 para 16 rather than formal enquiries being opened. Gemma Thake Tax Partner at Price Bailey comments: ‘What seems to be happening in many cases is that HMRC is making blanket determinations about claims based on risk profiling of the claimants rather than acting on specific information about individual claims which is what it should be doing.’
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HMRC have quadrupled the number of claims for R&D tax relief ‘corrected’ by its Fraud Investigation Service. According to data obtained by Price Bailey released under the Freedom of Information Act it amended 2 440 claims for R&D corporation tax relief in 2024 (as of 12 November 2024) compared to 670 in 2023.
These claims have been amended using powers under FA 1998 Sch 18 para 16 rather than formal enquiries being opened. Gemma Thake Tax Partner at Price Bailey comments: ‘What seems to be happening in many cases is that HMRC is making blanket determinations about claims based on risk profiling of the claimants rather than acting on specific information about individual claims which is what it should be doing.’
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
