Significant delays in HMRC’s processing of R&D tax claims

Substantial delays are being experienced by companies claiming for R&D tax credits, with some claims taking over three times longer to be processed than the 28 days pledged by HMRC.

This delay is hampering many companies who rely on the tax incentive as a means of financially supporting their innovation. In particular, smaller start-ups who are reliant on R&D tax relief as a form of inward investment.

The Chartered Institute of Taxation (CIOT) has since written a letter to HMRC, expressing their concern over the processing times and its potential impact on businesses.

Current processing times (as of 24 June)

R&D tax credits
Claim submitted: 29th March 2019
Processing time: 87 days

RDEC
Claim submitted: 20th December 2018
Processing time: 186 days

What’s causing the delays?

The current lack of resources within HMRC’s R&D processing unit is being speculated as a cause. The CIOT has asked HMRC to explain the current delays, but they have yet to respond. They have also asked how the delays are going to be resolved, suggesting it would be beneficial to manage expectations by providing an indication of the expected turnaround of claims.

The delays are also causing communication between HMRC, advisors and taxpayers to be hindered, with large numbers of businesses chasing HMRC as to the status of their R&D claim.

Haines Watts R&D tax specialists

At Haines Watts, our specialist R&D team can take the hassle of claiming R&D tax relief off your hands. Our team will handle all correspondence with HMRC on your behalf, so you have more time to work on the things that really matter. Get in touch today to find out how we can help with your R&D claim.