UK HMRC Criminal Investigation · 2025 · Fabrication
Bennett Verby Ltd: Criminal Prosecution for R&D Fraud
HMRC Criminal Prosecution, UK 2025
What happened
In August 2025, HMRC charged Bennett Verby Ltd, a Stockport-based accountancy firm, and six individuals with offences under the Criminal Finances Act 2017. The allegations concern over £16 million in fraudulent R&D tax credit claims filed by the firm on behalf of clients. Over 100 HMRC investigators were involved. The prosecution is notable as the first use of the Corporate Criminal Offence against a tax advisory firm specifically for R&D fraud. Under the CCO, a corporate body can be convicted of failing to prevent its associated persons from facilitating fraud without proof that individual directors knew about or authorised the fraud. Trial is set for September 2027. For the R&D tax market, Bennett Verby represents an escalation in enforcement: from compliance checks and rejected claims to criminal prosecution of the advisers who submitted them. The difference between a legitimate claim and a fraudulent one rests on whether the technical work was done contemporaneously, by a qualified person, in a way that was documented at the time.
Outcome
Criminal charges filed. Trial set September 2027. A firm can be convicted without proving individual director culpability if it failed to prevent staff facilitating the fraud.
Sources
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