In September 2021, the First Tier Tribunal ruled that the expenditure of £26,050 by Grazer Learning Ltd was not classed as R&D and was not entitled to be treated as a tax credit and has ordered the company to pay the money back to HMRC.

The claim for the credit by Grazer Learning, which is a start-up company that develops online and digital tools to help tutors and students, was made in the accounting period ending 31 October 2017 based on the creation of an online platform that would take into account a learner’s prior experience and specific learning goal in offering learning content.

The claim produced a payable tax credit of £26,050 which was received by the company on 6 June 2018. However, an inquiry was opened into the claim on 9 September 2019 where HMRC disagreed that the work undertaken constituted as qualifying for R&D relief and ordered the company to pay back the credit.