HMRC is simplifying the self-reporting of overclaimed R&D tax relief.
The new online disclosure service will enable innovative companies to make a voluntary disclosure to HMRC where the window to amend the tax return has passed.
Any overclaims that are uncovered first by HMRC, without any prior self-disclosing, can lead to heavy financial penalties. It is, therefore, welcome that the Government is now simplifying the process for innovative companies and their tax advisers to make it known themselves.
An effort to increase unprompted disclosure comes after the publication of figures revealing approximately £1.13 billion in incorrect claims were made in 2023.
It is important to note that the new portal is only available in cases where too much R&D relief has been inadvertently or mistakenly claimed resulting in the need to pay more Corporation Tax or return tax credits, and only where amendments to the relevant tax return is no longer possible. (usually as it is outside the allowable revision period).
This new service is not for disclosing anything other than accidental overclaims of R&D tax relief.
Should you require further advice on ensuring your R&D tax claim complies with the legislation, or you wish to have past claims reviewed please get in touch for an initial free consultation or speak to one of our team.
James is a Content Writer at MMP Tax.
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