In an effort to mitigate abuse of tax credits, HMRC suspends certain research and development claims while it investigates irregularities.

Until it is able to investigate some claims that are irregular, HMRC has frozen the payment of some research and development (R&D) tax credits. The majority of R&D tax credit claims will not be affected, according to ICAEW (Tax Faculty).

HMRC requests and suggestions:

  • As HMRC attempts to prevent abuse of the relief, there will be delays in the usual processing times for claimants.
  • To chase claims, claimants should not contact the R&D helpline/mailbox.
  • The company and agent need to update the status of claims in the claimant’s online account.
  • All aspects of the R&D section of the corporation tax return (CT600) should be completed by claimants. In addition, submitting information to support claims, such as an R&D report, will help HMRC to process claims more quickly.

HMRC response and Statements:

HMRC aims to pay the tax credit or contact the claimant within 40 days for the majority of claims. In the near future, HMRC hopes to return to its standard 28-day processing time.

Soon, The government will update its guidance. HM Revenue and Customs (HMRC) has shared this update to inform legitimate claimants that they will have to wait longer to get their tax credit payments.

In a forum post, the agent says, 

“We appreciate agents’ and claimants’ patience while we handle these claims”. 

Who We Are

Swanson Reed is one of the UK’s leading R&D Tax Relief consultancies. We manage all facets of the SR&ED tax credit program, from claim preparation and audit compliance to claim disputes.

If you would like to find out more about how your business could benefit from R&D Tax Credit, contact a Swanson Reed R&D Tax Advisor today.