A Norwich-based consultancy firm offering tax relief services has closed down less than two weeks after being raided by HMRC. 

Staff at Green Jellyfish, based at the Union Building on Rose Lane, were told it had ceased trading on Monday (October 7).

Green Jellyfish was one of the companies raided by HMRC on September 25.

On the same day the tax authority arrested 11 people across the country on suspicion of Research and Development (R&D) tax relief fraud.

The company is now believed to have closed down and moved out of the city office block, despite its website remaining live. 

Green Jellyfish did not respond when approached for comment. 

Green Jellyfish has closed down less than two weeks after being raided by HMRCGreen Jellyfish has closed down less than two weeks after being raided by HMRC (Image: Green Jellyfish) READ MORE: How businesses are being targeted by R&D tax relief fraud - costing UK £1bn a year

HMRC executed warrants at the companies Green Jellyfish and Kirby & Haslam, both based in the Union Building in Norwich, last month. The two firms said they had "nothing to hide".

HMRC refused to confirm the names of the businesses that were raided, but said the arrests were part of a coordinated operation to tackle suspected abuse of the R&D tax relief system.

After the HMRC raid, a Green Jellyfish spokesman said: “We understand that HMRC has a job to do, and we are fully cooperating and supporting them with the investigation as we have nothing to hide.”

Jonathan Smith, HMRC’s director responsible for agent compliance, said: “These arrests are just one small part of the comprehensive and wide-ranging action we're taking to tackle suspected R&D fraud.

HMRC raided Green Jellyfish at the Union Building in Norwich's Rose Lane on September 25HMRC raided Green Jellyfish at the Union Building in Norwich's Rose Lane on September 25 (Image: Newsquest)

WHAT IS R&D TAX RELIEF?

R&D tax relief was created as an incentive for companies to invest in innovative projects in science and technology to help grow the UK economy.

R&D tax relief costs the UK about £8bn a year. However, HMRC's latest accounts show £4.1bn has been lost on the schemes due to error and fraud since 2020.

Error and fraud in the scheme for smaller companies made up an estimated 26 per cent of relevant expenditure in 2021-2022, or £1.2bn.