HMRC clampdown pushes R&D activity abroad An increasing number of British firms including many motorsport firms are moving their R&D activity abroad after a crackdown on tax fraud by HMRC led to delays in processing claims. More than two-thirds (69%) of UK businesses moved R&D activity abroad last year, figures from Ayming’s UK Innovation Barometer show, while a further 70% of plan to shift more of their R&D overseas in 2023. Brexit and the UK’s economic downturn have also discouraged research activities. HMRC’s crackdown, however, has seen 35% of businesses face delays in receiving R&D tax relief payments. A UK Government spokesperson said: “The Government recognises the hugely important role that R&D and innovation play for the economy and society… The Government will work with industry over the coming months to understand whether further support is necessary for R&D intensive SMEs.” For many motorsport businesses R and D is an essential tax relief.