HM Revenue & Customs (HMRC) has acknowledged the significant delays in processing times of Research & Development (R&D) Tax Relief claims and are taking steps to improve the turnaround time.
HMRC’s aims to process small/medium enterprise (SME) claims within 28 days from the date of submission, however, they have been unable to achieve this. HMRC have undertaken measures in an attempt to be as close as they can to the 28-day turnaround target by the end of September 2019, not just for SME claims, but now for all R&D claims including RDEC.
This is welcome news for R&D tax relief claimants who will see the rewards for their R&D investment quicker which will allow them to reinvest and continue with further innovation. Since the acknowledgement by HMRC, we have started to see progress with the processing of outstanding claims.
R&D tax credits are a government incentive designed to, reward UK companies for investing in innovation and activities that directly contribute to the resolution of scientific or technological uncertainties.
How can AAB help?
- Establish whether your company qualifies for R&D tax relief;
- Work with you to prepare a claim in accordance with the legislation;
- Assist you with measures to help maximise the value of your claim
By Andrew Blair, Tax Senior Manager.