How many R&D tax relief claims have been rejected in each year since 2015; and how many of those have been successfully appealed.
In October 2024, HMRC released operational data in the Approach to Research & Development Tax Reliefs 2023-2024 publication. This includes data from 2022-2023 and 2023-2024 on the number of R&D enquiries, the proportion of claims requiring adjustment and data on appeals. This publication represents the most comprehensive data on R&D compliance activity and is not available for previous years. This publication also included customer service data on processing times and the average time to complete a compliance check. HMRC processed 92% of claims within 40 days in 2023-2024. Processing means paying the claim, making contact to request further information, or refusing the claim, and, for claims identified as high-risk, starting an appropriately targeted compliance check. The table below provides final and illustrative estimates of the cost of error and fraud in the R&D tax reliefs since 2020-2021. Final estimates 2020-2021 (£m)Final estimates 2021-2022 (£m)Illustrative estimate 2022-2023 (£m)Illustrative estimate 2023-2024 (£m)SME scheme1,0381,2031,003475RDEC scheme9013448125Overall1,1271,3371,050601 The Mandatory Random Enquiry Programme approach introduced for small and medium sized enterprises represents good practice in the measurement of error and fraud, and involves a detailed inspection of a representative sample of claims filed. These estimates are published in HMRC Annual reports and Accounts and previous reports can be found at gov.uk at: HMRC’s Annual reports and Accounts.