Ian Davie
Senior Consultant
The biannual HMRC R&D Communication Forum (RDCF), the first this year on the 10th March 2026, was a virtual meeting only this time. The RDCF provided a detailed update on the state of R&D tax relief, upcoming operational changes, the evolving compliance environment, and HMRC’s report on the use of AI as part of the R&D tax reliefs. Attended by accountant tax advisers and specialist R&D consultancies, it is an opportunity to hear from HMRC with up-to-date news, progress, and plans for the R&D schemes. The following is a summary of the main points discussed and any potential implications going forward.
One of the headline themes was the continued shift in the R&D tax relief landscape. HMRC confirmed that the number of claims has been steadily falling year-on-year, with 61,000 claims in 2023/24 compared to 51,000 in 2024/25. Despite this reduction, overall R&D expenditure increased to £8.2billion from around £7.6billion in 2023/24, meaning claims are becoming fewer but larger.
The largest reduction has been in SME claims, especially lower-value claims. This has been a reaction to increased compliance checks and has put many companies with genuine claims off claiming, in our experience.
A major operational announcement concerned the redeployment of compliance activity. HMRC advised that its Campaigns and Projects (C&P) team will no longer open new enquiries, focusing instead on closing existing cases. Future enquiries will be conducted through WMBC (Wealthy, Mid-Sized and Business Compliance) teams, which will assume responsibility for more complex and higher-value cases.
The move away from C&P and utilising ISBC (Individual & Small Business Compliance) is a good move. ISBC has had a sketchy reputation for performing R&D compliance checks, with poor understanding, elongated response times, and inconsistent replies. WMBC has built a more solid reputation for handling claims, and this can only be an improvement.
This organisational change is intended to eliminate the impersonal, task-based enquiry model criticised in previous years and instead reinstate named HMRC caseworkers, increasing accountability and improving the overall experience for compliant businesses.
Read more about WMBC and ISBC government guidance
One of the most anticipated announcements was the Advanced Assurance Pilot, set to launch in early May 2026. HMRC described this as a targeted effort to combat the “file and hope” approach and provide early certainty to SMEs preparing R&D claims.
Under the pilot, SME companies, whether having claimed previously or rejected, can obtain assurance, with HMRC aiming to offer rapid turnaround times, on the following:
This is widely viewed as a structural improvement that may reduce enquiry risk and support better quality submissions.
It will be a test to see how this scheme performs, as the previous Advance Clearance scheme was little utilised, with only 1% of first-time claimants using the scheme in 2023-24, as the risk of rejection before even making the claim was too high. This also did not reduce the workload of a claim, as full claim documentation was still required each year.
The aim of the pilot is to continue reducing fraud and error, help businesses get it right, prevent disputes, respond to feedback on the use of Advance Clearance, and support real innovation. Now, call me a sceptic, but I am yet to be convinced of the argument of avoiding disputes. These normally happen because both parties have a differing opinion as to whether their R&D is classed as R&D. That will still happen at the Advance Assurance stage as much as the submission stage, unless, of course, you are just trying your luck, in which case you deserve to be rejected!
HMRC also confirmed changes intended to reduce unnecessary claim rejections. It will now adopt a more pragmatic approach to administrative errors. These can be literally small details that catch companies out, such as minor typos in the Additional Information Form (AIF), incorrect UTR entries, or date mismatches. Deviate by one digit or one day, and presently your claim is invalid and rejected.
Taxpayers whose claims were previously rejected for such errors will be contacted to have those claims reinstated.
Additionally, improved forms for Northern Ireland businesses are being introduced to reduce friction, particularly regarding State Aid compliance obligations under the Windsor Framework.
One of the most discussed topics was HMRC’s rapid adoption of Artificial Intelligence (AI) tools. R&D caseworkers now have access to Microsoft Copilot, and several AI-enabled tools are in development or pilot stages, including:
HMRC emphasised that:
This aligns with HMRC’s wider Transformation Roadmap and indicates sustained investment in digital capability.
The meeting reiterated that the Merged, or New RDEC Scheme, and SME Enhanced R&D Intensive Support (ERIS) are now fully operational following the end of the transition period. Key points include:
These clarifications aim to provide stability after years of rapid policy change.
A consistent agenda item at the RDCF is HMRC’s shared positive performance metrics, noting:
These developments form part of a broader effort to restore trust and predictability in R&D compliance interactions.
The 10th March 2026 HMRC R&D Communication Forum marked a significant moment of stabilisation in the R&D tax relief landscape. While the number of claims continues to fall, the system itself is becoming more structured, predictable, and supportive for compliant companies, which TBAT themselves are seeing. With the rollout of the Advanced Assurance Pilot, pragmatic error handling, and a shift toward specialist-led enquiries, HMRC is signalling a renewed commitment to balancing rigorous compliance with a smoother experience for legitimate claimants.
Advancements in AI, improvements in customer service, and ongoing refinement of ERIS and the merged scheme reinforce HMRC’s broader aim of a modernised, efficient, and fair R&D tax relief system that rewards true innovation.
Please get in touch with our TBAT team today if you would like support navigating any of the changes from the HMRC R&D Communication Forum, general HMRC guidance, or would simply like to discuss your project or your claim.
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