Research and analysis

Customer experience in claiming Research and Development tax reliefs

Qualitative research exploring the behaviours and decision-making processes of businesses with regard to their research and development activity. 

• From: HM Revenue & Customs
• Published: 30 November 2021

Documents

Customer experience in claiming Research and Development tax reliefs

Ref: HMRC research report 634

PDF, 590 KB, 33 pages

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Details

HM Revenue and Customs (HMRC) commissioned research to explore how businesses understand and claim Research and Development (R&D) tax relief. Specifically, the research sought to examine:

• what and who makes decisions and is responsible for the claim
• how businesses find out about the reliefs
• guidance and support received, used and needed
• use and influence of agents
• what compliance attitudes and behaviours companies demonstrate in making a claim

The research was commissioned by HMRC and carried out by Kantar Public, and consisted of 39 UK businesses (micro, small, medium, and large) who had claimed R&D tax relief over the past 2 years and received either a full, partial or nil tax relief. The sample comprised of sole traders (1), micro businesses (15), small businesses (17), medium businesses (5), and large businesses (1). Businesses were sampled from HMRC administrative data.

The research provides new evidence regarding businesses perceptions of R&D relief, particularly around the ease of claiming, the overall complexity of reliefs and the effectiveness of HMRC guidance in regards to R&D reliefs.

The findings of this report cover:

a. How and why do companies decide that a project qualifies (or does not qualify) for R&D tax relief purposes? What sources of information do companies use to inform this decision? 

b. What factors influence the decision to make (or not make) an R&D Relief claim in respect of a qualifying project?

c. What influences which R&D scheme a claim is made under?

d. How and why do companies decide (or not decide) to use an agent to support their R&D claim? For those using agents how is contact made and claims prepared?

e. What is the journey of companies who decide to make their own R&D claims? Who prepares and submits the claims and why?

f. What motivates the attitudes and behaviour of companies claiming R&D reliefs? How does this differ by agent use?

Published 30 November 2021