HMRC has launched a special R&D Disclosure Service for companies with overclaimed research and development (R&D) tax relief but can no longer amend their corporation tax returns. This scheme applies to businesses needing to pay additional corporation tax or repay overclaimed tax credits.
The service is open to directors, company secretaries, and tax advisers and operates separately from HMRC’s contractual disclosure facility. Companies must provide their unique taxpayer reference, registered address, standard industrial classification code, and details of the accounting periods affected to start a disclosure. They must also explain the mistake and confirm the amount owed.
Once submitted, HMRC will review the disclosure within 15 days and decide whether to accept it or request further information. If accepted, the company must pay the full amount within 12 months.
Unlike other HMRC disclosure schemes, this service does not waive penalties, and eligibility criteria are strict. HMRC warns businesses to be vigilant, as many rogue R&D claims firms have misled companies into making invalid claims.
Companies that delay and wait for HMRC to investigate risk penalties and criminal prosecution. HMRC has stressed that this scheme is not the only way to correct excessive claims, especially where fraud is suspected. Companies should seek expert advice to understand the available disclosure routes.
R&D tax relief remains under close scrutiny, with HMRC set to publish updated guidance in February 2025.Â
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