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...
01 May 2026
As we've now entered the new tax year, we've outlined below how to prepare for the new tax system changes for 2026/27 and why planning ahead for your tax return in January 2027 is advised. Read our blog for an overview of the upcoming changes.
Learn more
New Tax System Changes for 2026/2730 Apr 2026
Statutory accounts show the past. Management Information delivers timely insights into performance and cash flow, driving better commercial decisions.
Learn more
Why good Management Information is essential for Business Growth
28 Apr 2026
While you can’t control geopolitical tensions, economic volatility, shifting regulations, you can control how your business is structured to respond to them
Learn more
When To Review Your Business Structure
28 Apr 2026
Market volatility and deal pace are changing how SME owners view risk and reward. Read our insights on value creation in today’s M&A market.
Learn more
Increasing the Value of your Business
27 Apr 2026
Compliance matters, but most commercial problems do not arrive neatly at month end. Modern finance supports decisions as they happen, not just records them afterwards.
Learn more
Building a Better Business with an Outsourced Finance Function
20 Apr 2026
For many businesses, the loss of the key person can cause disruption. Having Key Person Insurance can ease financial risk and uncertainty.
Learn more
What Is Key Person Insurance and Why Does It Matters for Your Business?