What are the current requirements and risks around R&D tax relief claims for drinks brands?

R&D tax relief claims for FMCG drinks brands are increasingly scrutinised by HMRC and require careful consideration before submission.

**Current situation:** - HMRC now requires R&D claims to be filed via an approved agent rather than directly - Government has become "much stricter" on what qualifies; members report increased investigation activity and repayment demands on previous claims - Several brands are choosing not to proceed with claims this year due to heightened risk

**Qualification rules:** - **Data Fox** was used by members but is now "much more cautious" given stricter enforcement - New variants, bottle designs, and cosmetic changes do **not** qualify — claims require "proper science involved" - Members strongly advise exercising caution and understanding exactly what HMRC will accept before claiming

**Caveats:** - Many FMCG brands (not just drinks) are currently under investigation for previous claims, with significant repayment demands - The landscape has shifted materially in recent months; historical claims that passed may no longer meet current criteria