Premier League Clubs Claim Millions in R&D Tax Relief Meant for Science & Tech

Chelsea and other top-flight football clubs have claimed millions of pounds in tax relief under a research and development (R&D) tax scheme intended to support advancements in science and technology. However, questions are being raised over the validity of these claims, with HMRC facing criticism for inadequate oversight.

Original Source
The Times
Written by
Craig 'Tosh' McKinnon
17 Feb
15:07
Business

The1905.Club Summary

An investigation by The Times has revealed that 28 sports teams across football, rugby, and cricket have claimed £13 million under the R&D tax relief scheme since 2019. This scheme is meant to support companies making genuine scientific or technological advancements that benefit the broader industry—not just their own business.

Chelsea alone claimed over £2 million from 2020 to 2023, but when asked to justify their claims, the club refused to comment. Other clubs, including Nottingham Forest (£607,000) and Harlequins (£1.3 million), have also benefited from the scheme.

Chelsea, owned by Todd Boehly, received millions in tax credits and refunds from HMRC
DAVE SHOPLAND/AP

HMRC has been widely criticised for its handling of R&D tax relief, with the cost of the programme ballooning from £1.1 billion in 2010 to £7.5 billion in 2023. An estimated £4.1 billion in fraud and error losses have been recorded since 2020, raising concerns over whether clubs’ claims have been properly vetted.

Key Points

Key Takeaways:

  • Chelsea Claimed £2 Million in R&D Tax Relief: The club received £1.14m in 2021, £1.05m in 2023, and £215,000 in tax credits but has not explained what research they conducted.
  • Premier League & Rugby Clubs Have Claimed £13m: Nottingham Forest, Fulham, Harlequins, and Dundee United have all used the scheme.
  • Tax Experts Question Validity of Claims: Dan Neidle, a tax expert, asked: "If clubs have made valuable scientific and technological advances, where are they?"
  • HMRC’s Oversight Criticised: The programme has been plagued by fraud and errors, with £4.1bn lost since 2020.
  • Consultancies Pushing ‘Aggressive’ R&D Claims: Some tax firms have been accused of exaggerating claims, including one firm that tried to claim R&D credit for installing a fridge.

What’s Next?

  • Government & HMRC Scrutiny May Increase: With widespread fraud concerns, clubs could face investigations into their claims.
  • Potential Repayments or Legal Action: If clubs are found to have misused the tax relief, they could be forced to repay funds or face legal penalties.
  • Stricter Regulations on R&D Claims: Future claims may be subject to more rigorous checks to prevent questionable tax relief payouts.

With millions at stake, this issue could spark further financial and reputational risks for Chelsea and other clubs involved.

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The Times
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Written by 
Craig 'Tosh' McKinnon
Co-founder of The1905Club. A life long Chelsea fan and season ticket holder for over twenty years. Now residing in Poland, this doesn't stop Tosh from watching every minute of every game.
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