You may be aware of some delays in dealing with R&D tax claims at this present time. HMRC has been inundated with R&D tax claims recently. As a result, they are some way behind in terms of processing claims and payments.

 HMRC has taken steps to ensure the processing of R&D tax claims is brought back to normal expectations after weeks of delays recently. The normal turnaround time of 28 days has been exceeded as a flurry of claims come through the system. In many ways this is a positive – it means that the message surrounding R&D tax claims is getting out there. But for a business waiting for the cash from a claim, the delays cause confusion and worry.

Some of the issues relate to the difference between RDEC (Research and Development Expenditure Credit Claims) which are for larger companies and R&D tax credits for SME’s.

Getting Your Claim Paid 

As you know, we provide ourselves in the fact that we offer exceptional customer service. At this present time, we are moving along to the beat of someone else’s drum. This is frustrating but progress is in sight.

Be assured that LUMO are on top of the situation and keeping in regular contact with HMRC’s R&D unit regarding all of the claims we have going through the system. HMRC have taken the following steps to return to their usual processing times –

• Additional staff members have been taken on to cope with the workload
• They are treating all claims as equally important and processing them regardless of whether they are RDEC or R&D tax claims
• Using the vast pool of customer service staff they have to process claims when seasonal demands peak
• Provide turnaround times and other service information to stakeholders via the R&D Consultative Committee

All of these measures should see HMRC get back on track and provide the kind of service we all expect from a government agency. If you have any questions about R&D tax credits or the processing of a claim, then drop us a line. If you are waiting for the results of your claim, then please be patient at this time. We will let you know when things are moving along for you.