HMRC and the government need to take urgent action to clamp down on the prevalence of R&D tax fraud and reform the rules, says Lord Leigh of Hurley, chair of the Finance Bill Sub-Committee
Research and development (R&D) is a vital contribution to the UK’s economy and productivity. Support from HMRC and the Treasury in the management of R&D tax relief is essential to ensure that the UK’s economic growth and job creation continues to thrive.
However, the government’s latest Finance Bill (2022-23) has pinpointed increasing evidence in the abuse of R&D tax relief and has proposed legislative changes to combat this abuse.
However, recent reports direct criticism towards how compliance activities from HMRC are conducted towards R&D tax relief, noting an inconsistency of approach and failure to take account of information already received from claimants when making enquiries, poorly focused questions and a reluctance to engage constructively with taxpayers and their agents.
