More than 2,000 nudge letters sent to combat Research & Development (R&D) tax fraud
21 February 2023
HMRC sent over 2,000 nudge letters to R&D claimants this past January in an attempt to clampdown on rising fraudulent activities and errors in submissions.
Nudge letters are sent to ensure tax affairs are complete, up-to-date and to deter breaches of tax rules. The latest batch relate to R&D tax claims.
Latest reports estimate that in 2021-2022 a staggering £469m was lost through R&D tax relief fraud, with fingers being pointed at rogue advisers and spurious claims.
The nudge campaign is part of a wider ‘compliance enforcement activity’ and proves to be a stark warning to companies abusing the current R&D tax relief schemes. Those who receive a letter could face higher penalties if errors are subsequently found within their claims.
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Done right, R&D relief remains hugely beneficial for qualifying businesses. Done wrongly, there may well be trouble ahead. Feel free to talk to our team about current claims and/or any historic concerns.
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