An update on R&D tax credit payment delays

We informed you last month that HMRC had paused some R&D Tax Credit payments while they investigate an increase in irregular claims.

We received an update from HMRC on the delays, so if you are waiting on an R&D claim payment, read on…

HMRC have announced that to prevent abuse of the reliefs they will be enhancing their extensive compliance check even further, which will result in increased claim processing times.

At the moment, they are aiming to either pay the payable tax credit (or get in touch with claimants) within 40 days – They will revert to their standard 28-day processing times as soon as they possibly can.

To help speed up the process, HMRC are asking claimants to:

• Ensure you have completed all entries on the R&D section of your Corporation Tax return (CT600 form).
• Remember that submitting additional information to support the claim, such as the R&D report, will help process the claim quicker.
• Make sure you review the latest guidance on completing your CT600 form on GOV.UK, as submitting an incorrect, inflated or fraudulent claim will incur a penalty.

HMRC appreciates claimant’s patience and understanding, and have asked that claimants do not to contact the R&D helpline/mailbox to chase claims.

If you have any further questions, or would like an update on a claim payment, please get in touch with your ABGI representative. We will continue to share updates when we have further information.