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The processing of claims for R&D tax credits has fallen way behind HMRC’s target 28 day turnaround time over the past few months.
This is causing much frustration and cashflow difficulties for UK companies, especially startups.
As of 8 July 2019, HMRC was processing claims filed up to 4 April 2019 – that’s claims that had been filed with HMRC for 95 days! For the large company (RDEC) incentive, the turnaround times were even worse at 200 days….
The Chartered Institute of Taxation has written to HMRC to find out what is going on and HMRC has responded saying that it is primarily due to a combination of:
- recent staff departures and
- a general increase in the volume of claims received.
We’re hoping to see improvements over the coming weeks for this important funding lifeline for many UK businesses.
You can read the CIOT article here: https://www.tax.org.uk/policy-technic…