Is your R&D Tax Advisor trustworthy or risky?

R&D tax relief is one of the UK’s most generous incentives for businesses investing in innovation. But in recent years, the scheme has become a magnet for the wrong kind of attention.

From inflated claims to outright fabrication, the industry has been marred by examples of poor - and sometimes unethical - practice. And the cost? It’s not just falling on HMRC or the taxpayers. It’s falling on businesses that trusted the wrong advisor.

⚠️ Football Clubs, False Claims & Public Outrage ⚽️

In July 2025, The Times reported that at least 33 professional football clubs were under investigation by HMRC over £17 million in potentially illegitimate R&D tax claims. These claims reportedly included funding footballers’ salaries - something that clearly falls outside the boundaries of what HMRC defines as qualifying R&D.

That story was built on data compiled and shared by Dan Neidle, founder of Tax Policy Associates, who’s been vocal about the abuse of tax relief schemes and the failure of oversight.

Shortly after, Rufus Meakin, a well-known voice in R&D compliance, dug deeper in his newsletter series, outlining how such claims were structured and how they’ve been allowed to pass through, often aided by advisors who are either uninformed - or deliberately opportunistic.

In parallel, Paul Rosser has been documenting how poor-quality claims are being generated, including widespread use of AI-generated narratives, templated reports, and vague descriptions that bear little relation to actual R&D activity.

All of this points to a harsh truth: many businesses are being misled by advisors who are either incompetent or worse - knowingly unethical.

Why It Matters to You

If your business has claimed or is considering claiming R&D tax relief, you need to be sure your advisor knows what they’re doing - and is doing it for the right reasons.

Because when HMRC launches an enquiry (which is happening more frequently), it’s your business on the line, not your advisor’s.

🚩 Red Flags to Watch Out For

Drawing from my video series and the research shared by experts like Rufus, Dan, and Paul, here are key warning signs that your R&D advisor might be putting you at risk:

Part 1: Common Red Flags

  1. Fails to define R&D properly under HMRC guidelines - or applies their own definition.

  2. Doesn’t involve technical leads or engineers from your team in preparing the claim.

  3. Uses AI-generated or copy-pasted reports with no project-specific detail.

Part 2: More Serious Red Flags

  1. Encourages overclaiming or inflating costs, e.g., marketing, equipment hire or maintenance activities or increasing R&D percentages.

  2. Describes vague or exaggerated project scopes to make routine work seem innovative.

  3. Pushes you to submit claims quickly - without due diligence or proper documentation

  4. Does not support you in establishing accurate R&D boundaries – but rather suggest for you to apply vague finger-in-the air estimates.

If any of this sounds familiar, it’s time to pause and review your position.

✅ What Does a Trustworthy R&D Tax Advisor Look Like?

A reliable advisor does more than just file claims - they act as a strategic partner in your innovation journey. Here are the traits of a trustworthy advisor:

☑️ Has real technical experience & track record – background in Science, Engineering or Tax is a huge bonus – training and experience in R&D tax is a must.
☑️ Focuses on compliance, not just the size of the claim – they dig deep into the costs included in the claim and seek for clear connection to the R&D activities.
☑️ Works collaboratively with your team, especially your technical leads or engineers – it is not possible to prepare a valid R&D claim without them.
☑️ Provides or guides you in writing your own clear, company-specific technical narratives - never copy-pasted, reused from previous years or AI-generated boilerplate, but clear description of your projects done in the period the claim relates to.
☑️ Is open about their fees, process, and how they calculate eligible costs – the costs are carefully evaluated and connected to the project work, they cannot be simply pulled out of your accounts or books and entered to the tax return.
☑️ Can explain their methodology clearly and reference HMRC guidance directly – they will work closely with you, so you created methodologies together and is able to answer your questions and explain how the rules apply to your work.
☑️ Is willing to push back if your project doesn’t meet the criteria or certain costs cannot be included - they’re not there to say yes to everything, but to advise you on the rules and the best course of action.

These are the foundations of a defensible, robust R&D tax claim - and your best protection against future HMRC scrutiny.

Want to Stay Safe?

🎥 I’m publishing a video series covering topics like:

  • How to spot a risky R&D advisor

  • The risks of filling an incorrect claim

  • How to choose a trustworthy advisor

  • How to check if your claim is technically sound

  • The new requirement to notify intent to claim or miss out and

  • Upcoming changes to the R&D scheme & what it means to you

🔔 Subscribe here to stay up to date and protect your business from costly mistakes.

Final Thought

Behind every questionable R&D claim is someone who said, “Don’t worry, we do this all the time.” Make sure that someone isn’t advising you.

Further reading & sources:

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HMRC’s R&D Crackdown: Fighting Fraud or Stifling Innovation?