HMRC has paid out millions in fraudulent tax claims, according to audit, tax and consulting service provider RSM.

In particular, the enterprise investment scheme (EIS) and the seed enterprise investment scheme (SEIS) have been subject to widespread abuse.

The EIS and SEIS initiatives are government schemes that encourage investment into start-up and scale-up companies.

In return for putting their funds at risk and providing capital to early stage companies, individual inves...