R&D Tax Credits – Processing Delays to be Expected

HMRC warn of a delay to processing R&D claims

Many entrepreneurial businesses starting out rely on the refunds that they claim by surrendering losses under the research and development (R&D) tax credits incentive scheme in the UK.

HM Revenue and Customs understood that these businesses were dependent on the claims being processed quickly and have had a 28 day promise to process all claims over the last couple of years, in particular during the tough times of the pandemic. However, that is all set to change as HMRC have announced that they are enhancing their compliance checks and that claimants should expect delays in processing their claims.

Enhanced extensive checks will mean that HMRC’s standard processing times will increase. The announcement comes as part of a plan to prevent abuse of the R&D tax credits system and follows a notification of a pause by HMRC recently introduced on some payments while it investigated an increase in irregular claims. The investigations are ongoing.

The updated timetable means that HMRC are aiming to either pay the payable tax credit or contact the claimant regarding the claim within 40 days. HMRC intends to return to the 28 day processing time as soon as it is able to do so.

If you would like help with making your claim, our specialist team can help you. An accurately completed company tax return submitted with the appropriate documentation will enable HMRC to process the claim more quickly and reduce any delays, and we can help ensure that this is achieved.

Please contact us to discuss how we can help you with your R&D tax relief claim.

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