The R&D tax regime offers valuable incentives to companies that carry out innovative work in science and technology. Despite the common misconception, it’s not just available to high-tech, pharmaceutical, or R&D-centric businesses but can be claimed by a broad range of companies provided they are seeking to make an advancement in their relevant field or industry. 

In recent years, HMRC have clamped down on the R&D tax scheme available to companies, and in August 2024 the BBC reported that HMRC’s latest accounts reveal £4.1bn has been squandered on the schemes since 2020. It said the levels of error and fraud were “unacceptable”.

This has led to an increase in compliance to submit an R&D claim, and a marked rise in R&D enquiries by HMRC. It has been reported that one in five applications for R&D are now being investigated. This is a 20-fold increase in HMRC enquiries into the eligibility of R&D tax relief claims made by UK businesses, according to a recent House of Commons report.

But don’t be put off.  We understand that the prospect of a crackdown on claims and increase in enquiries by HMRC may be daunting, but if claiming under the R&D scheme is appropriate, we would encourage our clients to continue to do so. Here at Frost Wiltshire, we only prepare and submit a claim once we are satisfied that the activity being undertaken meets the strict criteria to qualify as R&D.

Our R&D service also includes fee protection insurance, leaving you free from the worry of unexpected costs if HMRC were to open an enquiry into your claim. If you have been hesitant about whether to move forward with an R&D claim, get in touch – we’d be happy to hear from you!