Changes to multibillion-pound tax incentives for business investment will not be enough to prevent abuse of taxpayers’ money, a House of Lords committee has warned.
It says that HM Revenue & Customs must invest in extra resources and more careful scrutiny of claims under the research and development tax credits schemes.
The programme provides tax incentives to invest in technology and innovation. An investigation by The Times last year revealed allegedly dubious claims apparently submitted under the scheme, including for introducing vegan menus, blueberry croissant recipes and staff performance reviews.
The government has proposed legislative changes to combat such abuse, including the requirement to provide HMRC with more detailed information about the nature of a claim; naming any tax adviser involved in preparing claims;
