Research and Development HMRC Tax Credits

HMRC has stopped its payment of some research and development (R&D) tax credits while it investigates irregular claims.

The majority of R&D tax credit claims will not be affected, but claimants are warned there will be delays to the usual processing times while HMRC tries to prevent abuse of the relief. Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing.

An HMRC spokesperson said: “We have paused some development tax credit payments while we investigate some irregular claims. The majority of R&D relief claims are unaffected but there will be some delays to our usual processing times. This is to ensure we prevent abuse of the relief”

HMRC has also requested that claimants do not contact the R&D helpline or mailbox to chase their claims. Companies should review their online accounts for updates on the status of their claims, while the tax authority also reminded claimants to complete all aspects of the R&D section of the corporation tax return (CT600). Review the latest guidance on completing your CT600 form on Gov.uk

Submitting additional information to support any claim, such as an R&D report, will also help HMRC process claims quicker.

If you wish to discuss this further, please contact us!