Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 8 May 2024 to Question 24673 on Research: Tax Allowances, whether HMRC monitors the number of unsuccessful R&D tax relief claims on an annual basis; and if he will make an assessment of the potential impact of HMRC's volume compliance approach on the number and proportion of claims from small and medium-sized enterprises that have been successful since 2022.

HMRC continually monitors its compliance approach to R&D tax reliefs, which is in line with their wider aim to help people get their tax right first time through education, improving our systems, and stepping in with proportionate, targeted responses where tax is at risk of going unpaid.

HMRC undertake high-volume targeted activity to contact multiple customers who make similar mistakes, prompting them to correct the errors. Examples of this include trade sectors where HMRC do not generally see successful claims for R&D.