R&D enquiries – we need your help!

CIOT recently met with HMRC to discuss ongoing concerns with R&D enquiries, continuing our engagement with HMRC and our work to reduce the collateral damage from HMRC’s ‘volume compliance’ approach (see our letters from July and December 2023, and update earlier this year). We shared feedback that agents are still seeing widespread poor quality letters and struggling with a lack of engagement from HMRC with the technical questions around what is R&D in some cases. We also highlighted difficulties with closure notices, and a number of other issues raised with us. HMRC explained that they are taking steps to improve escalation routes, quality checks and the training of caseworkers, but we stressed that progress feels slow with limited impact in practice as yet; and a clearer plan of action is needed. We would like to help the senior leaders in HMRC to see what agents are seeing and receiving from some HMRC caseworkers in the conduct of enquiries and help demonstrate how widespread the issues are (something we understand they currently do not have a clear picture of). To this end, we would like to share recent examples with HMRC. Subject to confidentiality and client consent, please send any recent example that we could share with HMRC, anonymised or redacted if necessary, by email to [email protected].