Price Bailey Advises Businesses on Managing Historic R&D Tax Relief Positions
As the HMRC R&D Disclosure Facility reaches its first anniversary, leading accountancy firm Price Bailey has issued advice to SMEs that have recently exited the R&D tax relief scheme, noting that ceasing claims does not remove the need to consider historic filings.
Recent analysis of HMRC enforcement activity suggests that some business owners may believe that stopping R&D claims reduces the likelihood of further review. September 2025 statistics showed a near 30% decline in SME R&D claims, indicating that many companies have chosen to pause or withdraw from the scheme amid heightened compliance requirements.
Price Bailey advises that a sudden change in claiming behaviour may still be visible within HMRC’s compliance systems. Variations from previous claim patterns could lead to follow-up queries, particularly where historic submissions remain within enquiry time limits and opportunities for voluntary correction are narrowing.
Commenting on the trend, Mohammed Mogra, Tax Director and R&D specialist at Price Bailey, said, “Many businesses have reviewed the Merged Scheme rules and the increased level of enquiries and decided that making a claim this year requires careful consideration.”
The advisory comes as HMRC prepares to pilot its new Advance Clearance service in Spring 2026, an initiative expected to streamline future claims while allowing compliance teams to focus more closely on reviewing historic submissions.
With the R&D Disclosure Facility now fully operational for 12 months, Price Bailey notes that HMRC’s approach to voluntary disclosures is expected to continue evolving as the facility matures.
Mohammed Mogra added: “For businesses with concerns about historic filings, the priority should be understanding their position before HMRC makes contact. Specialist support can help companies review earlier claims, assess potential exposure, and prepare clear and transparent disclosures where appropriate.”
To find out more about how Price Bailey supports businesses with R&D tax relief claims and historic reviews, visit the firm’s dedicated R&D tax relief page.
About Price Bailey
Price Bailey is a top 40 accountancy practice providing accountancy, tax, and business advisory services to regional, national, and international organisations. Alongside core accounting services, the firm offers specialist expertise across tax consultancy, corporate finance, strategic planning, insolvency and recovery, and employment law, delivering an integrated business advisory offering.
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