The R&D claims company was set up in 2019 and until recently had five directors, although four resigned last week on 7 March leaving the sole founding director, Naim Mahmud, 33, in charge.

The company’s website is out of action and has not published any information for clients. There is simply a one-line message on the site stating: ‘RDI Solutions is not in operation’ with a contact email address for enquiries.

Mahmud was appointed as director of RDI Solutions in December 2019 and is a director of a total of eight companies, including Innovault Limited, an IT consultancy, which is registered at the same address as RDI Solutions at Innovation Centre Medway in Chatham, Kent.

The four resigned directors were Faruk Ahmed, Talal Mahmud, Barnie Reece Power, a former EY associate, and Vignesh Srinavasan, who had all been appointed on the same day on 24 May 2022.

According to Companies House, the business is owned by sole director Naim Mahmud through Mahmud Group Holdings, and had nine staff, including directors.

On promotions for the company, RDI Solutions claimed it was ‘one of the UK’s leading tax incentive and innovation management advisers. With our analysts and technical experts, we manage tax incentives annually for a broad range of clients including some of the nation’s best-known brands. We have a 100% success record in reclaiming R&D tax reliefs for our clients to date’.

RDI Solutions also said it handled monthly R&D claims worth around £20m in tax relief, representing a sizeable annual claim book of £240m, and had ‘3,000 clients’.

The latest filed accounts showed an operational profit of £3.28m for year end 31 March 2023, up from £367,198 the previous year. However, this was offset by substantial debts due to director’s loan and loans to subsidiary companies owned by the director.

There was a £381,264 outstanding directors’ loan account in name of Naim Mahmud, taken out in the course of FY2022. Also during the year, the company loaned Mahmud Estates, another of Mahmud’s companies, £4,561,700, and a further £10,082 to another group company called Black & White Accident Management.

RDI Solution was due to file accounts for year end 31 March 2023 by 31 March 2024.

Rufus Meakin, an R&D tax credit expert, said: ‘RDI Solutions was well-known among other R&D advisors for its high pressure sales environment and the eye-watering 35% commission fees it charged to clients.’

HMRC paid out £4.8bn in annual R&D tax credits, with a SMEs accounting for a substantial share of the relief payments. Many claims have been delayed over the last year as HMRC has taken a much more confrontational approach to claims following a high level of fraud. A new system to pre-register R&D claims is now in operation to prevent abuse.

Mike Dean, managing director at WhisperClaims, said: ‘As the government redefines the rules around R&D tax claims, the process has undeniably become more challenging for both claimants and advisory firms.

‘Those who have failed to keep up with compliance and had a higher number of claims rejected will certainly have seen their fees – typically paid after a successful claim – cut.

‘At first, it may seem like this latest closure will restrict the ability of innovative businesses to make a claim.

‘However, if HMRC’s actions are having the desired effect, and increase the quality of claims within the profession, then there should be less ambiguity and uncertainty for claimants in future.’

RDI Solutions has been contacted for comment.