HMRC Simplifies R&D Tax Relief and Cracks Down on Minimum Wage Breaches

Enews – 24 October 2025

In this week’s Enews, there is news on HMRC’s measures to make Research and Development tax relief easier for businesses to understand. There is also news on enforcement action on employers that fail to comply with the minimum wage and HMRC’s latest tax guidance for businesses to update you on.

Expert Advisory Panel to provide industry insight on R&D tax relief

HMRC has appointed six independent industry specialists to a new Research and Development (R&D) Expert Advisory Panel.

The introduction of the panel is one of a number of practical enhancements that the tax authority says will make it easier for UK firms to understand R&D tax relief.

R&D tax reliefs are valuable incentives designed to encourage businesses to invest in innovative science and technology projects, driving economic growth across the UK.

These improvements include an expanded reporting channel for agents; and a user-friendly free online tool to help businesses check their eligibility before submitting a R&D claim.

HMRC says that together, these enhancements are designed to support business innovation, improve claim accuracy, and strive to make the system work for everyone.

The new panel brings together experts with real world experience, offering deep sectoral knowledge across manufacturing, technological development, life sciences and AI, says HMRC.

Jonathan Athow, HMRC’s Director General, Customer Strategy and Tax Design, said:

‘HMRC welcomes the advisory panel and their sectoral insight and expertise. Along with the new guidance tool, we are delivering on feedback from agents and businesses, making it easier for genuine innovators to access the support they deserve, while protecting the system from abuse.’

Internet link: HMRC press release

Employers named and shamed for minimum wage breaches

The government has named and shamed nearly 500 employers who failed to pay the National Minimum Wage (NMW).

The employers have been fined over £10 million for failing to comply with NMW laws.

In addition, £6 million has been repaid to 42,000 workers by employers who have been underpaying their staff.

The government says that enforcement of workers’ rights is set to be beefed up through the new Fair Work Agency which will shield workers from employers who flout the law.

It says that this strong enforcement does not just protect workers; it protects those businesses who do right by their staff from being undercut.

By taking swift action against these employers, the government is sending a clear message that it will not tolerate those who short-change their workers, regardless of their size or sector, it adds.

Business Secretary Peter Kyle said:

‘Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.

‘I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.

‘This ensures a level playing field where all businesses pay what they owe whilst workers receive the boost to their living standards they deserve.’

Internet link: GOV.UK

Latest guidance for employers

HMRC has published the latest issue of the Employer Bulletin. The October issue has information on various topics, including:

  • Making your PAYE Settlement Agreement payment.
  • Guidance for labour supply chains featuring umbrella companies.
  • New Advisory Electric Rate for fully electric company cars.
  • Spotlight 71 — Warning for agency workers and contractors who are moved between umbrella companies.
  • ‘Tax Help for Hustles’ campaign — new resources for employees.
  • Update on Winter Fuel Payments recovery through the tax system.

Internet link: GOV.UK

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