HMRC Increase R&D Tax Credits Compliance Checks

HMRC have provided a further update this week following their previous notification that some R&D Tax Credits payments have been paused. Last month it was flagged up that they were investigating some irregular claims and that processing times may be delayed as a result.

Now, to prevent continued abuse of R&D Tax Credits, HMRC have advised they are enhancing their extensive compliance checks. These additional checks will mean the standard processing times for R&D Tax Credits will increase.

HMRC say that for the vast majority of claims, they will aim to either pay the payable tax credit or contact claimants regarding the claim within 40 days. It is their intention to return to the standard 28-day processing time as soon as possible.

It has been well documented recently that HMRC are clamping down on fraudulent claims and these steps are being taken to protect the integrity of R&D tax reliefs. Those submitting claims that are incorrect, inflated or fraudulent may be liable to a penalty.

HMRC have shared this update to notify legitimate claimants that their payments will take longer to be processed. As previous, they have requested that claimants do not contact the HMRC helpline/mailbox to chase up their claims and that they or their agents should look at their online account to check the status of their claims.

If you have concerns about the integrity of claims your business or its agents have submitted, we offer a free consultation where you can discuss this in confidence.

As specialists in R&D Tax Credits, we ensure that all the claims we handle are strictly in keeping with HMRC’s guidelines.  We ensure our clients get back everything they are entitled to whilst remaining fully compliant. We want you to get the most out of the R&D Tax Credits scheme but we won’t file frivolous claims or try to over-claim for work which doesn’t qualify.