United Kingdom: Fee rules | Research Credit Integrity Alliance

This page sets out what statute and HMRC rules say about the fees advisers charge for United Kingdom research and development (R&D) tax relief claims. Professional body rules on fees are covered separately on Professional body rules. This page describes the rules only and makes no recommendation.

Summary

Question	Position as at 11 October 2026	Source
Does statute cap or prohibit contingent fees for R&D claim work?	No such provision was identified for this page	See below
Can an agent receive the client's R&D tax credit?	Generally no, for claims made on or after 1 April 2024	Corporation Tax Act 2009, section 1142D1
Can a company assign its R&D tax credit to a third party?	New assignments made on or after 22 November 2023 are void, with a transitional exception	Corporation Tax Act 2009, section 1142C1
Does HMRC expect agents to explain how they are paid?	Yes, in its non-statutory standard for agents	HMRC standard for agents, section 4.3.32

Is there a statutory rule on contingent fees?

No provision of UK tax legislation that caps, prohibits or requires disclosure to HMRC of contingent fees for preparing R&D claims was identified for this page. The fields HMRC lists for the additional information form that must support each claim ask for each agent's name, business name, telephone number and email address. They do not ask for the basis or amount of the agent's fee.3

HMRC's 2024 consultation on raising standards in the tax advice market described the existing framework as partial. It said that anti-money laundering supervision was the only legal requirement needed to set up in business and provide tax advice and services, and that the HMRC standard for agents is non-statutory.4

Payment of the R&D tax credit to the company

HMRC offers Corporation Tax payers a nomination service, under which repayments or payable tax credits are paid to a nominated third party, such as an agent, instead of to the company.1 Section 1142D of the Corporation Tax Act 2009 restricts this for R&D. For claims made on or after 1 April 2024, HMRC will generally pay R&D tax credit or RDEC only to the claimant company, and the company must give its own payment details on its Company Tax Return (CT600).1

There are two exceptions:

Connected party. The nominee is connected with the claimant company, as determined under section 1122 of the Corporation Tax Act 2010.1
Exceptional circumstances. An HMRC officer is satisfied that exceptional circumstances make payment to the company impracticable or inconvenient. HMRC's manual says this will not generally include a case where the company has entered into an ordinary commercial agreement with a nominee, unless exceptional circumstances also apply. It also states that there is no right of appeal against HMRC's decision in an exceptional circumstances case.1

A company that relies on an exception must write to HMRC with the nominee's payment details, the exception that applies and supporting evidence. The letter is signed by a current director or by the company's authorized agent.1

The restriction applies only to payments of R&D tax credit and R&D expenditure credit. It does not apply to general Corporation Tax repayments, even where these result from an R&D claim.1

When a claim is "made"

HMRC's manual explains that a claim is made when the first original return or amendment containing it is submitted. A later amendment that changes the amount is not a new claim, but a claim made after an earlier claim has been withdrawn is a new claim. So a claim reinstated after withdrawal on or after 1 April 2024 is subject to the restriction.1

Assignments

An assignment gives a third party a property right over a payment.1 Under section 1142C of the Corporation Tax Act 2009, new assignments of R&D tax credit payments made on or after 22 November 2023 are void, unless the assignment was made to carry out an agreement entered into before that date.1 HMRC continues to pay an assignee under an assignment made before 22 November 2023, even for claims submitted on or after 1 April 2024, if evidence of the assignment is provided.1

Why the change was made

The government's policy paper on the measure said it would help reduce "the unacceptably high levels of non-compliance in the R&D reliefs". It stated that while most use of nominations is not associated with fraud, a high proportion of fraudulent or fraud-adjacent claims use nominee bank accounts.5 The policy paper estimated that around 12,000 businesses would be affected, mainly by having to provide their own bank details with their CT600.5

HMRC later said that, under the change, R&D agents are no longer able to receive their clients' R&D tax credit payments through nominations, subject to limited exceptions, so that payments go directly to the claimant company. HMRC said this would help reduce non-compliance "by reducing the financial incentive for agents to overstate claims", and that more than 90 percent of claims that are fraudulent or display some markers of fraud use nominee bank accounts.6

The restriction concerns who receives the money. It does not regulate the amount or basis of an adviser's fee.1

HMRC's standard for agents on fee terms

The HMRC standard for agents is not law and does not replace anything in law.2 It says agents should make their terms of engagement as clear and simple as possible, in particular:

how the agent is to be paid for its services;
how any repayment of tax will reach the client and what conditions apply;
details of deductions the agent will make from any repayment it handles for the client; and
the rights of both agent and client to end the arrangement.2

It also says agents should agree the terms of engagement before starting to act, get the client's confirmation that it accepts them, and offer a reasonable cancellation period.2 Agents must make sure all communications and advertising material are fair, clear and accurate and do not mislead or conceal material facts.2 See HMRC Standard for Agents.

Fees and the disclosure of tax avoidance schemes

The Disclosure of Tax Avoidance Schemes (DOTAS) rules apply to arrangements where a tax advantage is, or might be expected to be, the main benefit or one of the main benefits, and which fall within a prescribed description known as a hallmark.7 One hallmark concerns premium fees and is prescribed by regulation 8 of the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006. HMRC's guidance says that hallmark is met if some or all of the fees are refundable if the scheme fails to obtain the expected tax advantage, or payable if the client succeeds in obtaining it.7

The CIOT and ATT remind members who charge contingent fees to be aware of the DOTAS requirements and of the consequences of applying contingent fees which may be considered a premium fee.8 Under HMRC's guidance, a hallmark is one of three conditions for disclosure. The other two are that the arrangement will, or might be expected to, enable a person to obtain a tax advantage, and that the advantage is, or might be expected to be, the main benefit or one of the main benefits.7

Sources

HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805, "R&D tax relief: conditions to be satisfied: restriction of nominations and assignments" (updated 25 August 2026), sections "Explanation of terms", "Restriction of nominations (CTA09/S1142D)", "When is a claim made?", "Restriction of assignments (CTA09/S1142C)", "Legacy assignments" and "Scope of measures". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026). Back
HM Revenue and Customs, The HMRC standard for agents (updated 9 February 2026), sections 1, 4.3.3. https://www.gov.uk/government/publications/hmrc-the-standard-for-agents/the-hmrc-standard-for-agents (accessed 11 October 2026). Back
HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD182000, "R&D Tax Reliefs: reformed reliefs: claims process: additional information form" (updated 25 August 2026), table "What information is required", topic "Contact details". https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird182000 (accessed 11 October 2026). Back
HM Revenue and Customs, Raising standards in the tax advice market: strengthening the regulatory framework and improving registration (consultation, 6 March 2024), sections "The current partial regulatory framework" and "The limitations of the partial regulatory framework". https://www.gov.uk/government/consultations/raising-standards-in-the-tax-advice-market-strengthening-the-regulatory-framework-and-improving-registration/raising-standards-in-the-tax-advice-market-strengthening-the-regulatory-framework-and-improving-registration (accessed 11 October 2026). Back
HM Revenue and Customs, Restricting nominations and assignments for Research and Development (R&D) Relief (policy paper, updated 23 November 2023), sections "General description of the measure", "Policy objective", "Background to the measure" and "Impact on business including civil society organisations". https://www.gov.uk/government/publications/research-development-rd-tax-relief-reforms/restricting-nominations-and-assignments-for-research-and-development-rd-relief (accessed 11 October 2026). Back
HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026). Back
HM Revenue and Customs, Disclosure of tax avoidance schemes: guidance (updated 31 July 2026), sections 2.3.2, 5.4.1 and 5.4.5. https://www.gov.uk/government/publications/disclosure-of-tax-avoidance-schemes-guidance/disclosure-of-tax-avoidance-schemes (accessed 11 October 2026). Back
Chartered Institute of Taxation and Association of Taxation Technicians, Professional Rules and Practice Guidelines (effective 9 November 2018, updated 1 January 2021), paragraph 8.2.5. https://www.att.org.uk/sites/default/files/PRPG%20%28Update%201.1.2021%29%20-%20Final.pdf (accessed 11 October 2026). Back