For all the tech startups, we have some important news relating to R&D Tax Credits. Unfortunately, the HMRC has announced that the tax credit payments will be taking longer to be paid. It appears that there have been some irregular claims, and to prevent abuse of the program, the HMRC will be intensifying its compliance checks.
Understandably, the new compliance checks will increase the typical processing time, which is from 28-days to 40. This is a temporary change and the HMRC will aim to get the processing time back to 28-days as soon as possible.
However, in our understanding, it is taking more than 6 months on average for the funds to come in.
To make the process as smooth as possible, the HMRC advises completing all entries on the R&D section of the corporation tax return (CT600 form), submitting additional documents to support the claims, such as the R&D report, and following the latest information on their website.
HMRC asks claimants not to contact the R&D helpline/mailbox to chase their claims. HMRC also asks agents not to contact any HMRC official about a claim. Instead, agents should check the company’s online account to check the status of the claim.
Stay tuned for more news!