Stephen McCallion and Jack Avery of ZLX Business Solutions

The clock is ticking towards new government legislation that could penalise companies that claim tax relief for research and development activity.

From April 1st, 2023, changes to R&D tax credits mean claims made to HMRC will be subject to higher levels of scrutiny, require added layers of information, and need to be submitted digitally.

The move is designed to clamp down on anomalies and reported abuse of the current system – with fines for non-compliance now reaching up to 100% of the initial tax relief granted.

With only weeks until the deadline, Scottish firms should act now to ensure they are properly equipped, according to leading R&D tax credit specialist ZLX Business Solutions.

With offices in Glasgow and Aberdeen, the company is led by an experienced management team, including experts in legal, accountancy and technical disciplines, who help identify projects eligible for tax relief and navigate clients through the claims process.

ZLX says that HMRC’s renewed focus on improving compliance, which affects both SMEs and large organisations, creates more red tape for businesses and could potentially jeopardise economic recovery if firms don’t seek advice.

Founder and CEO of ZLX Business Solutions, Stephen McCallion, explained: “These latest reforms and tightening of the regulations surrounding R&D tax credits carry the potential to penalise businesses that are either not aware of the new requirements or that have made errors in good faith as part of their claim for tax relief.

“With the deadline fast approaching, businesses across the country need to make the necessary preparations now. This is particularly important given an estimated five-fold increase in the number of specialist inspections carried out by HMRC, providing a real deterrent against non-compliance.

“Over recent years, we have built a reputation for being a robust defender of our clients against HMRC compliance reviews – in no small part thanks to the investment we’ve made in recruiting our own, in-house specialist legal department, which continues to prove an important differentiator in the market.

“For companies that are active in R&D, it’s imperative they seek the right professional advice at the earliest opportunity to not only deliver maximum ROI but prevent them from falling foul of these impending legislative changes.

“As the go-to experts for tax compliance, our team at ZLX Business Solutions has broad expertise across the full spectrum of legal, financial and technical requirements, meaning we are ideally placed to protect clients’ interests and add value to their bottom line.”

ZLX Business Solutions provides trusted counsel to company founders and directors around tax compliance, raising finance, restructuring, and market repositioning. It works across the engineering, manufacturing, construction, energy, food & drink, and agriculture sectors with organisations at every stage of their growth journey.

For further information, please contact
0141 739 3377 or email