The Chartered Institute of Taxation (CIOT) is warning that HMRC’s efforts to tackle abuse of the R&D tax relief system are resulting in them rejecting legitimate claims and stone-walling others.
In a letter to HMRC, the CIOT wrote that the ‘volume compliance’ approach adopted by the tax authority since the second half of 2022 does not work because of the complex nature of the relief.
Ellen Milner, CIOT director of public policy, said: “We are receiving a large number of reports about the difficulties being encountered by firms carrying out genuine R&D.
“Valid claims are being rejected and businesses are being deterred from challenging HMRC by the disproportionate financial and time cost of doing so.
Read more on Insider_August2023
You might be interested in...
02 Oct 2026
Considering an MBO as an exit strategy? Learn how Management Buyouts work, how they're funded, and whether an MBO suits your succession planning goals.
Learn more
Management Buyouts (MBOs): A Practical Guide For Business Owners
30 Sep 2026
When businesses rely solely on internal decision-making, opportunities for innovation can become fragmented and financial planning risks becoming reactive rather than strategic. Here's why external advice matters.
Learn more
Why The Most Innovative SMES Don’t Go It Alone
30 Sep 2026
In an economy that operates at real-time speed, month-end reporting could be costing your business more than you realise.
Learn more
The hidden cost of waiting for month end
30 Sep 2026
Small and medium-sized enterprises (SMEs) account for 99.85% of all private sector businesses in the UK. Yet when discussions turn to Artificial Intelligence (AI), many business owners still assume that the real investment and opportunity sit with large corporates that... Read more
Learn more
Why AI Infrastructure Investment Matters, Even for SMEs