Multi-Million R&D Tax Fraud: Six Suspects Arrested

Following a raid earlier this month by 70 HMRC investigators, 6 men have been arrested as part of a tax investigation into a suspected multi-million-pound R&D tax fraud.

Research and Development Relief allows companies to: deduct 230% of their qualifying costs from their profits; or, if the company is loss making, claim a tax credit worth up to 14.5% of the surrenderable loss.  HM Revenue and Customs’ Fraud Investigation Service stated:  “HMRC reviews tens of thousands of claims for R&D tax relief each year with a significant increase in the scope, value and take-up of these reliefs in recent years”.

A team of more than 70 Fraud Investigation Service Officers searched 7 private homes and 2 business addresses across the West Midlands and the South of England on 10 December.  Computers and other records were seized and taken away.  6 men were arrested and interviewed under caution. Investigations are continuing.  Ages and home towns of the arrested men were: 65 year-old from Solihull; 61 year-old from Worcestershire; 55 year-old from West London; 63 year-old from Somerset; 66 year-old from Essex; and a 73 year-old from Essex.

What does this mean for me?
If you have submitted a genuine R&D claim then you should not fear being prosecuted. HMRC may look into the claim: but there wouldn’t normally be any suggestion of tax fraud. But if you have deliberately submitted an incorrect R&D claim then you should seek specialist help immediately: before HMRC knock on your door (or smash it down!).

How Could Lynam Tax Enquiry Experts Help Me?
We have decades of extensive practical experience in managing tax disclosures and tax fraud investigations. If you have irregularities in your tax affairs we can advise you on your best course of action. Where necessary, we can help with any disclosure. If you are already under criminal investigation we can assist in the preparation of the defence case. We can help get the best possible outcome for you, your business and your family.

*For a free, private, no obligation consultation, call
Paul Lynam: 0845 643 9997
Andrew Nutbrown: 07718 778710