HMRC R&D Communication Forum Update: Compliance Strategy, AI Use and Policy Stability
Some of the highlights from yesterday’s (10 March 2026) HMRC R&D Communication Forum (RDCF):
Operational Update from HMRC R&D Leadership
An operational update from David Tarelli – one of the 2 Heads of Operations in R&D together with Linzi Gribben: a change in compliance strategy.
HMRC are seeing fewer R&D claims overall, a drop from 61000 in 23 /24 to 51000 in 24/25 – SME claims are going down, RDEC claims are going up, as you might expect with the introduction of the merged scheme, however this general trend has been ongoing for a while.
Conversely R&D expenditure has increased from 7.7bn to 8.2bn = meaning fewer claims of average higher value.
HMRC feels it has addressed key risks through its ‘bulk compliance’ activity, and reduced error and fraud.
Due to this and the trend of fewer/larger claims, compliance work is now being refocused more into WMBC/Midsize, evolving away from the bulk compliance Campaigns and Projects team work.
This is being resourced through expansion of WMBC – some of those C&P staff will be moved into WMBC, let’s hope this will not be a dilution of Midsize’s generally higher levels of expertise.
The Campaigns and Projects team is no longer opening new cases, it is just working current cases to closure with support from WMBC.
New teams in WMBC will follow WMBC ways of working, meaning there will be individual case ownership, the process will not be ‘task based’/automated/anonymous which was a major problem with the C&P enquiry process.
They’ll be looking at risks across the R&D population, but these will be more complex risks of higher value, so we can expect enquiries to be more focused, more detailed and hopefully to involve better trained caseworkers.
HMRC’s Use of AI in R&D Compliance
Will Innes – technical team lead in Incentives and Reliefs, gave some detail of HMRC’s use of AI.
The Government is investing in HMRC’s AI and Technical estate in line with HMRC’s Transformation Roadmap published in July 2025.
It is developing and planning some AI powered tools for caseworkers so they spend less time on administrative tasks.
A ‘compliance casework assistant’ has the potential to transform the way staff conduct compliance activity across the whole of HMRC.
RE: Tools specifically for R&D compliance – HMRC is testing an R&D summariser tool as a pilot to summarise key information contained within an R&D report or AIF to give caseworkers a quick high level view – we are assured that no customer data left the HMRC estate, and was not used to inform compliance activity in the pilot.
The aim is to free up specialist resource, offer more meetings and improve the process for compliant businesses, and improve administration of reliefs so legitimate payments can be passed and paid out faster.
HMRC is evaluating results, taking a cautious approach, and we are told “accuracy and trust are non-negotiable”.
All colleagues including R&D caseworkers now have access to Copilot and should follow the UK government’s AI Playbook which sets out how to use AI safely and securely across the Civil Service.
The framework includes clear guidance on using generative AI responsibly and it covers ethical duties and key risks like data protection, bias, hallucinations and the potential for AI to present fiction as fact.
HMRC are also delivering training to caseworkers, to bring all of those considerations to life specifically in the context of Copilot and their compliance cases within R&D.
It will tell staff that they are accountable for how they use Copilot, and for checking its accuracy and appropriateness before acting, it will tell them that any AI output should be considered as a draft and not a final answer and that they must always review and verify content before sharing, publishing or relying on it.
And finally, that they should not rely on Copilot for any decision-making activity or the wholesale writing of letter responses. AI is there to support the caseworkers, not replace them. All decisions made during the compliance checks should be the caseworker’s own.
Anecdotal evidence suggests that the above aspirations are not always the reality. If anyone suspects incorrect AI use by HMRC caseworkers let the Department know – raise those concerns as part of the enquiry process and we are assured they will be investigated and dealt with accordingly.
External / Advisory Industry Use of AI Tools
Where software products use generative AI HMRC expects them to be transparent, ethical, consider HMRC guidance and only use reliable source data in line with relevant legislation, to be designed with human oversight and control, including strong data security and privacy measures.
HM Treasury Update: Commitment to Stability
Sam Crawley – heads up the R&D policy team in HM Treasury – commitment to stability.
The key priority at the moment is to maintain stability in the R&D relief. HMRC recognises there’s been a lot of change over recent years. that is why the government committed in the 2024 Corporate Tax Roadmap to maintain the generosity of both the RDEC and ERIS reliefs.
That combines with the commitment to cap the headline rate of Corporation Tax to mean that companies with qualifying R&D will continue to receive that cash value credit of between 15 and 27 pounds per 100 pound spent on qualifying R&D. And the intention behind that is to give businesses and claimants the certainty they need to plan those long-term investments after this period of change.
There’s a broader acknowledgement about the importance of certainty and stability of the tax system recognising that recent changes have put a lot of pressure on the administration of the reliefs. HMT is doing a lot of work with policy partners to address that as they want to make sure that the approach is as easy for the legitimate claimants to navigate as possible while continuing to root out error and fraud.
Broader strategies such as the expert advisory panel and similar initiatives are intended to make sure that the schemes work as effectively as possible.
Support for entrepreneurs rather than specifically R&D was launched at budget and primarily focused on the Venture Capital schemes, so SEIS, EIS, VCTs as well as tax advantage share schemes of EMI and CSOP and then CGT and business asset disposal relief.
Quite a few respondents highlighted both the importance of R&D tax credits to the UK’s, entrepreneurial startup /scale up ecosystem and also proposed ways that they could be strengthened coming back to where the reliefs could be made more generous in absolute terms as well, and this is all being considered.
Speak to Lumina’s R&D Specialists
R&D tax relief continues to evolve, with changes to compliance strategy, technology and policy shaping how claims are reviewed and processed. Staying informed is essential for businesses claiming, or considering claiming, R&D relief.
If you would like to discuss how these developments may affect your R&D claim or compliance process, Lumina’s specialist R&D team at Ad Valorem can help.
Our experts support innovative businesses across the UK with robust, compliant R&D claims and strategic advice to maximise relief while reducing enquiry risk.
Contact the Lumina team today to discuss your R&D claim.
(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk
