As mentioned previously, we recently wrote to the Revenue regarding the current delays in HM Revenue & Customs (HMRC) processing claims for Research & Development (R&D) tax credit claims. They acknowledged our letter, but could not give any guarantees of improvements at that time. [24 June: Delays in processing R&D Tax Relief claims – Letter to HMRC)
The Chartered Institute of Taxation has however also been in regular correspondence with HMRC and they have now informed us that the Revenue has acknowledged the significant delays in the processing of claims and has confirmed they taking steps to clear the backlog and speed up the processing and payments. Steps include redeploying staff from other work areas and recruiting new staff to assist them.
As a result of these actions, HMRC hopes to be up to date (that is to say, being as close as possible to a 28 day turnaround time) by the end of this month, 30 September.
We will continue to monitor the position and hope to see an improvement in processing times as a result of the action HMRC is taking.
For further information or to arrange for a no obligation preliminary meeting on how your company could qualify under the R&D Scheme, please contact Steve Govey, Head of Research & Development at Beavis Morgan, or your usual Beavis Morgan Partner.
View our video to find out more about R&D Tax Relief:
Further reading:
View our recent wins for our clients (Spring 2019 update)
R&D Tax Relief – Why thousands of businesses are missing out
R&D Tax Relief for SMEs – A user guide