Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the ONS R&D Tax Credit Data, published 29 September, what assessment his Department has made of the implications for its policies of the 7.3 per cent of SME R&D tax credit claims being attributable to error and fraud.
The current estimate of error and fraud in the SME R&D scheme is higher than the 2020-21 estimate, reflecting improvements in HMRC’s risk identification process. As part of an ongoing series of reforms to tackle abuse and better target the relief, in November 2021 we announced a series of new compliance measures that will be implemented from April 2023. These include requiring additional information from claimants, and the establishment of an anti-abuse unit.