HMRC held its latest meeting of the Research and Development Communication Forum (RDCF) on 10 March 2026. The forum brings together HMRC and industry representatives to discuss developments in the UK R&D tax relief regime and operational priorities.
Gryff Mason attended the forum and the observations below summarise the key themes discussed during the session. While we have sought to accurately reflect the discussion, these observations represent our interpretation and should not be taken as official HMRC guidance or meeting minutes.
Following several years of significant reform, HMRC indicated that the priority is now stability within the R&D tax relief system.
Recent changes have included:
The overall message was that the structural framework of the regime is now largely settled. The focus is shifting away from further legislative reform and towards improving administration, compliance processes, and claim quality.
Businesses should benefit from greater certainty when planning R&D investment and future claims. While technical guidance will continue to evolve, further fundamental structural changes to the relief appear unlikely in the near term.
Several operational developments were highlighted, including:
HMRC aims to improve the consistency and efficiency of claim processing while directing specialist compliance resources towards technically complex or higher value claims. The reduction in ADR cases may also indicate that HMRC is placing greater emphasis on resolving technical issues earlier in the enquiry process.
In practice, this may mean quicker processing for lower-risk claims, while more complex submissions are increasingly subject to detailed technical review by specialist teams.
HMRC data presented at the forum shows a significant reduction in the number of R&D claims submitted in recent years.
Estimated claim volumes have fallen to approximately 46,950 claims in 2023–24 (est.), down from a peak of 87,180 in 2020–21. The most notable decline has been within SME claims, which have more than halved over the same period.
Despite this reduction in claim numbers, the overall value of relief claimed has increased, suggesting that claims are becoming more concentrated among larger or more technically complex projects.
For the first time since the schemes were introduced, the value of relief claimed under RDEC (£4.41 billion) has exceeded that of the SME scheme (£3.15 billion). This reflects both the increase in the RDEC rate to 20% and reductions to SME relief rates introduced through recent reforms.
With many smaller claims no longer being submitted, the average claim value has increased significantly, rising by roughly 33% year on year to around £161,000.
This shift is influencing HMRC's evolving compliance approach.
Discussions at the forum suggested that HMRC’s compliance approach is evolving as the profile of R&D claims changes.
The compliance approach used in recent years by the Individuals and Small Business Compliance (ISBC) unit, particularly the use of large scale Projects and Campaigns issuing automated enquiry letters, is now winding down. HMRC indicated that compliance resources are increasingly being directed towards claims where the potential tax risk is highest.
Mid-market and complex claims are increasingly being reviewed by specialist HMRC teams, including the Wealthy and Mid-sized Business (WMBC) unit. Unlike the automated approach used in the ISBC campaigns, these enquiries are typically handled by a named inspector and involve a more detailed review of both the financial and technical aspects of the claim.
HMRC also indicated that it is making greater use of a Single Point of Contact (SPOC) approach in certain complex enquiries. This is intended to improve communication and provide continuity by allocating a dedicated caseworker to manage the review.
HMRC confirmed that caseworkers are beginning to use AI assisted tools, including Microsoft Copilot, to support aspects of their workflow. These tools are primarily used to summarise technical reports and assist caseworkers in reviewing large volumes of documentation, helping inspectors identify key facts more quickly.
HMRC emphasised that compliance decisions remain the responsibility of human caseworkers. Internal trials are also underway for tools designed to help identify inconsistencies between technical reports and information provided in the Additional Information Form.
HMRC’s evolving compliance approach places increasing emphasis on the clarity and completeness of claim submissions. Clear and well structured technical reports that explain the technological challenge, the uncertainties encountered, and the work undertaken to resolve them remain central to effective claim preparation.
Beyond the technical narrative itself, greater importance is also being placed on the supporting documentation that underpins a claim. This includes appropriate cost tracking, robust record keeping, and a clear understanding of contractual arrangements where R&D activities involve third parties or external funding.
HMRC announced plans to launch a new Advanced Assurance pilot programme, expected to begin in May 2026. The pilot is intended to allow companies to obtain HMRC's view on certain aspects of a potential claim before it is submitted.
Recent changes have included:
Further details on eligibility criteria and application procedures are expected later this year.
If implemented effectively, the programme could provide additional certainty for companies undertaking complex R&D projects, particularly where claims involve more nuanced eligibility considerations or cross-border activities.
The forum also discussed several developments relating to the operation of R&D tax relief in Northern Ireland. As these are more specific and still evolving, they are not covered in detail in this update.
One theme running through several parts of the discussion was the changing profile of R&D claims. With claim numbers falling significantly while the average value of claims increases, the regime is increasingly characterised by fewer but larger and more technically complex claims.
This shift appears to be influencing HMRC’s compliance approach. Rather than relying primarily on high volume enquiry campaigns, there is a growing emphasis on more targeted technical reviews of higher value claims, often involving specialist inspectors and deeper scrutiny of the technological baseline and the role of competent professionals within projects.
Particular attention is also being given to the correct application of the rules around contracted out R&D and subsidised R&D, both of which have become more significant technical considerations under the merged RDEC regime.
At the same time, HMRC representatives noted the increasing use of internal tools and technology to assist caseworkers in reviewing claims. These tools help inspectors review larger volumes of documentation and identify inconsistencies more quickly, allowing compliance activity to focus more effectively on areas where errors or misunderstandings may arise.
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In the UK, around 12 million tonnes of food are wasted annually, with households responsible for the majority. Much of this food is still edible. For the average household, this equates to roughly £1,000 worth of food thrown away each year.
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