The significant decline in R&D tax credit claims is alarming, as it not only affects small businesses but poses a threat to overall innovation within the UK economy.
Nikhil Oza pointed out, 'the time-consuming additional information form and the requirement for first-time claimants to inform HMRC in advance have become major hurdles for businesses seeking relief.'
Oza urged that the overly cautious approach of HMRC to filter out fraudulent claims is 'seriously hindering legitimate growth businesses and stifling the innovation that the UK needs'.
The excessive red tape involved in claims processing is likely to further dampen the UK's R&D spending, which is already lagging behind international competitors.
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