Many UK businesses are delaying R&D tax relief claims despite carrying out qualifying work. Recent HMRC figures suggest that increased scrutiny and compliance concerns are causing many legitimate businesses to avoid claiming the relief available to them. SME R&D tax relief claims have fallen by 31%, while first-time claimants have dropped by 45% to their lowest level in years.
These figures show that many businesses are choosing caution over claiming available relief. Growing compliance requirements and concern about HMRC enquiries have made some companies question whether making a claim is worth the risk, even when they believe they qualify.
Recent HMRC announcements also show that its compliance strategy is changing. Understanding these changes can help businesses make more informed decisions before delaying or submitting an R&D tax relief claim.
HMRC Is Taking a More Targeted Approach
At the March 2026 R&D Communication Forum, HMRC announced a major change to its compliance strategy. It is moving away from its previous volume-based approach for SME claims.
R&D compliance work is now being handled by specialist teams that focus on higher-risk and more complex claims. This marks a shift from broad compliance activity to more targeted reviews.
This does not mean HMRC has relaxed its standards. Businesses should still expect claims to be reviewed carefully. However, the focus is shifting towards higher-risk claims rather than broad compliance activity across all SME submissions.
For businesses, the message is clear. The recent crackdown should not discourage legitimate claims. The priority is to submit accurate claims supported by strong technical and financial evidence.
Claim Quality Now Matters More Than Ever
The merged R&D tax relief scheme is now the standard for accounting periods starting on or after April 2024. Businesses preparing claims in 2026 must follow these updated rules.
The mandatory Additional Information Form (AIF) is now part of every qualifying claim. Businesses must clearly explain their projects, qualifying activities, and eligible costs.
HMRC is also using data analytics and AI-supported risk assessment to identify claims that may need further review. As a result, businesses should place greater focus on accurate records, detailed evidence, and well-prepared claims.
Generic technical descriptions are no longer enough. Businesses should explain the technical challenges they faced, the work completed, and how the qualifying costs were calculated.
HMRC has also introduced a Targeted Advance Assurance pilot. Eligible SMEs can request guidance on up to two complex areas of a claim before submitting it. This gives businesses greater clarity when dealing with more technical requirements.
Why These Changes Matter
Many businesses have delayed R&D tax relief claims because they are unsure how the latest rules apply to them. Others worry that making a claim could lead to additional enquiries or longer review times.
Choosing not to claim, however, could mean missing valuable funding that supports innovation, product development, recruitment, and business growth. The latest HMRC figures suggest this caution is already affecting many legitimate businesses.
At the same time, poorly prepared claims can still lead to delays or additional questions from HMRC. Businesses should focus on preparing complete and accurate claims that reflect the work they carried out.
The latest changes do not remove the opportunity to claim R&D tax relief. Instead, they reinforce the importance of preparing claims that meet today’s compliance standards.
How Lanop Can Help
The latest HMRC figures show that many legitimate businesses are delaying R&D tax relief claims because of increased compliance concerns. While HMRC is moving towards a more targeted approach, businesses should not let uncertainty prevent them from claiming relief they are entitled to.
At Lanop, we help businesses understand the latest HMRC requirements and prepare claims supported by clear technical and financial evidence. Our team stays up to date with current developments so clients can make informed decisions with confidence.
If you have delayed an R&D tax relief claim because of recent changes, now is the right time to review your position. With the right advice and preparation, you can submit your claim with greater confidence while meeting HMRC’s current expectations.
