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...
05 Feb 2026
Every law firm that handles client money must complete an annual, independent Solicitors Regulation Authority (SRA) audit. Find out what it is, and what it covers.
Learn more
Does Your Law Firm Need an SRA Audit?
03 Feb 2026
Find out how Capital Allowances are changing from 2026 and the impact on business tax relief for plant and machinery investments.
Learn more
Changes to Capital Allowances in 2026
28 Jan 2026
Tax rate changes for dividends, savings, and rental income will be phased in across 2026 and 2027.
Watch now
Dividends, Savings and Property Income Tax Rate changes
28 Jan 2026
The government announced the new business rates. Research has revealed that more than half of firms plan to increase their prices.
Learn more
What Pressures Are Businesses Facing Thanks to UK Business Rates?
28 Jan 2026
Our TC BSN team's helped VIQU IT grow and scale their business, starting with a team of five employees to investing in three other businesses to form VIQU Group. Read more to find out how we helped.
Learn more
Case Study: VIQU IT
26 Jan 2026
Our HR Health Check is a comprehensive audit of your businesses HR operations. Watch to learn what it includes and how long it takes.
Watch now
What’s a HR Health Check?