Lord Leigh of Hurley
Main Page: Lord Leigh of Hurley (Conservative - Life peer)Department Debates - View all Lord Leigh of Hurley's debates with the HM Treasury
(4 months ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of the pressure experienced by start-up companies arising from delays in accessing tax incentive schemes designed to support them, including the Enterprise Investment Scheme and Research and Development tax credits.
My Lords, I beg leave to ask the Question standing in my name on the Order Paper and draw your Lordships’ attention to my entry in the register of interests.
My Lords, HMRC is currently exceeding its published customer services aim to process R&D claims and EIS applications within 40 working days. In some cases, this will involve contact with a company to undertake further checks, rather than immediate approval or payment. This is necessary to ensure that relief is claimed only by those who are eligible.
My Lords, I understand the need to check claims in certain areas. I am chair of the Finance Bill Sub-Committee of the Economic Affairs Committee, and we have reported on extensive R&D fraud, but there is no history or evidence of fraud in respect of EIS. However, there is evidence of heavy-handedness by HMRC in restricting claims, so will my noble friend agree to set up a working party that includes EIS fund managers to consider best practice and to reduce costs and unnecessary delay in granting EIS relief?