HMRC steps up R&D tax claim checks
What businesses need to know
HMRC has recently turned up the heat on research and development (R&D) tax relief claims, and the numbers tell the story.
In 2023/24 alone, errors in R&D claims totalled
£441 million, and one in five claims were subject to enquiry — a sharp rise from just one in twenty two years ago.
This increased scrutiny isn’t going away anytime soon. HMRC has launched a specialist anti-abuse unit, adding 300 more staff to its small business compliance team. Around 500 officers now focus entirely on identifying errors and potential fraud in R&D claims.
What’s changed
Two new measures mean businesses need to be more careful than ever when preparing R&D claims:
- The Additional Information Form (AIF) now requires detailed project and cost breakdowns before a claim can be submitted.
- The Mandatory Random Enquiry Programme (MREP) means that even perfectly compliant claims could be selected for review.
In other words — R&D claims will now face more checks, more questions, and higher expectations for evidence.
How to reduce your risk
There are a few simple but essential steps that can make all the difference:
- Keep your documentation solid.
Track project milestones, staff time and related costs throughout the year. Back everything up with payroll data, invoices, and receipts. A clear audit trail is your best defence if HMRC asks for more detail.
- Stay proactive, not reactive.
Don’t leave compliance checks until the end of the year. Regular reviews and early preparation make the process smoother — and help you avoid nasty surprises later on.
- Work with the right support.
Combining strong record-keeping with the right technical expertise can make your R&D claim both credible and efficient.
Rejected claims don’t just delay refunds — they can hurt your cashflow, confidence, and growth plans. With more enquiries expected, accuracy and preparation are absolutely vital.
If your business is involved in innovation, take the time to get your R&D process right now.
