New Forest

13/06/2022

HMRC to delay Research & Development (R&D) tax credits

HMRC have announced they are investigating some irregular claims for R&D tax relief. Therefore, as a consequence HMRC have for the time being delayed the processing of these claims and repaying any associated R&D tax credit payments. This is being done in order to help prevent the abuse of the scheme.

It has been acknowledged by HMRC that the bulk of R&D claims that have been submitted are genuine. However, as a consequence of the above there is also likely to be an overall delay to the usual processing times of genuine R&D claims and the payments of R&D tax credits resulting from these claims.

R&D tax relief is a generous tax relief available to companies that have undertaken work that aims to lead to an overall advance in science and technology. For companies that meet the definition of an SME, additional corporation tax relief of 130% is available on qualifying expenditure.

Companies that have undertaken qualifying R&D claims which are loss making can claim an instant R&D tax credit. This is 14.5% of the total taxable loss made (or the deemed qualifying R&D expenditure if lower).

If you believe your company has been involved in work that has led to an overall advance in science/technology, please get in touch with Joe Wilson on 023 8046 1237, and we can explore making a claim on your behalf.

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