HMRC’s acknowledgement that its handling of some research and development (R&D) tax relief claims has not met its own standards and commitments under its charter, has been welcomed by the Chartered Institute of Taxation. In a letter to the institute, the tax authority says it is taking steps in response to improve its training and assurance processes.
However, the institute remains concerned that HMRC’s ‘volume approach’ to managing R&D enquiries means that legitimate claims will continue to be rejected, and the underlying objectives of investment in innovation and economic growth will be undermined as businesses are put off claiming relief to which they are entitled.