So far, eight individuals have been arrested over their alleged misuse of government tax incentives. They allegedly organised over 100 false claims, estimated to be in excess of £16 million, and then laundered the money.

One of the suspected individuals arrested was a tax agent who allegedly facilitated the “organised criminal attacks”. Part of a wider investigation, the activity is not limited to these eight individuals so more arrests are expected, The Times reports.

The exploited R&D program was initially launched in 2000 for small and medium enterprises. It was further expanded in 2002 under Gordon Brown when he hailed the move as a “£400 million boost to innovation and research in Britain and to modern manufacturing in our country”.

There are now two schemes, one for larger businesses and one for SMEs, and the annual tax relief cost has ballooned to £7.4 billion. In March 2020 alone there were a recorded 85,900 claims.

Last year, the National Audit Office’s comptroller & auditor general, Gareth Davies, said the schemes are “complex and have proved attractive to those seeking to abuse them, opening up opportunities for fraud”.

A multitude of ridiculous claims of tax credits have been found such as for blueberry croissant recipes and a launderette application to adjust the temperature of washing machines. A far cry from the intended use of the tax relief.

In the run up to the upcoming fiscal statement, some suspect the programmes could be considered for cuts as the new prime minister is likely to be well aware of the issues surrounding the schemes.