R&D Tax Repayments
By Dan Hayley, Associate Tax Consultant
Are you waiting for a tax repayment from HMRC following the submission of a Research and Development (R&D) claim? If so, then unfortunately you will be waiting a little longer than usual to receive your repayment.
On Monday 23 May 2022, HMRC stated that they have halted the payment of R&D tax credits while it investigates irregularities in claims for the relief. HMRC stated that the move may cause delays to its processing times for other R&D tax credit claims, the tax authority said this will ‘ensure they prevent abuse of the relief’.
Whilst the R&D payments are being halted during this investigation, the tax authority stated that the majority of R&D tax credit claims are ‘genuine and will not be affected’. Further information will be issued to agents within the next week to provide an update on the processing times of R&D claims.
In anticipation that claimants will want to chase their R&D claim repayment, HMRC have requested that claimants do not contact the R&D helpline/ mailbox to chase their claims. Instead, it has asked agents and companies to review their online account for updated on the status of clients.
In order to process payments more quickly, HMRC has asked people to ‘ensure that they have completed all entries on the R&D section of the corporation tax return (CT600 form) adding that ‘submitting additional information to support any claim, such as an R&D report, will also help HMRC to process claims quicker’.
At WR Partners, to substantiate our clients claim, we prepare and submit an R&D report with every R&D claim that is submitted. If you are currently carrying out activities to look for an advance in science or technology and to achieve this, you will need to try and overcome technical uncertainty, then you may qualify for R&D relief. To know more about R&D relief in more detail, please contact me on 01743 273 273 or via email: dhayley@wrpartners.co.uk.
Latest news and insights
