HMRC have responded to the Chartered Institute of Taxation’s (CIOT) letter in June asking for a clarification on the lengthy delays to the processing of R&D tax relief claims.
The delays have been a burden to the many SMEs who rely on R&D tax credits to facilitate their business finances.
Reasons for the delays
HMRC have said that the reason for the delays has been caused by ‘recent staff losses’ and the ‘extremely high volumes of claims’ being submitted. To combat the delays and help mitigate the processing times, HMRC has deployed staff from other areas.
In terms of communicating turnaround times more clearly, HMRC has responded saying that it will continue to keep agents updated through the weekly update email to RDCC members. This also includes ‘auto-response’ messages to emails sent to the R&D mailbox to inform customers who enquire.
HMRC have noted that some R&D claims are being processed ahead of others. They’ve said this is due to the training requirements for new recruits to the team who will help to maintain a ‘fair’ and ‘steady balance’ to the current claim process.
Current processing times (as of 9 July)
R&D tax credits
Claims submitted on 4 April 2019
Processing time: 95 days
Claims submitted on 20 December 2018
Processing time: 200 days
Haines Watts R&D tax specialists
Our expert R&D team are ready to handle your R&D claims, taking the hassle of dealing with the process out of your hands. Simply sit back, focus on what matters to you and your business, and let us deal with the claim for you. Get in touch today to find out how we can help with all your business enquires.
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