This is the latest stage in HMRC’s increasing compliance activity with ‘nudge’ letters sent to selected businesses to warn them to check that their previous R&D tax relief claims are complete and correct, and where inaccuracies are identified, companies are urged to make amendments to their company tax return.

The letters were issued during the weeks commencing 23 January 2023 and 30 January 2023, according to the Chartered Institute of Taxation (CIOT), and have been sent to 2,024 companies in two batches of 1,000 and 1,024.

HMRC has also warned companies that they may face formal tax enquiries and rejected claims if their returns are found to be incorrect.