<ul><li>HMRC is cracking down on potential fraud in Research & Development (R&D) tax relief claims, with £1.13 billion of SME claims in 2020-21 flagged for errors or fraud.</li><li>Ecommerce businesses, particularly in platform development, are under increased scrutiny for R&D relief claims due to complex rules and potential misuse by some agents.</li><li>HMRC warns against reliance on 'no win, no fee' agents for R&D claims, as incorrect claims can lead to repayment with interest and penalties, creating a compliance risk for businesses.</li><li>The focus on R&D relief has shifted towards paperwork compliance, raising concerns that the scheme meant to drive innovation has turned into a bureaucratic challenge for businesses, urging caution and clarity in navigating the process.</li></ul>

R&D Tax Relief – HMRC fights back against fraud

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