HMRC recently contacted Chartered Accountants Ireland to advise that it is currently investigating what it refers to as irregular claims for research and development (“R&D”) tax credit payments. As a result HMRC has temporarily stopped making some R&D tax credit payments. There may also be some delays to processing times for other R&D tax credit claims. The full message from HMRC is below.
“The majority of R&D relief claims are genuine and will be unaffected, but for irregular claims there will be some delays to our usual processing times. This is to ensure we prevent abuse of the relief.
As usual, we will continue to issue the regular Monday agent email (from the R&D mailbox) to update R&D claimants on processing times.
From today Monday 16th May:
- HMRC have paused some Research & Development Tax Credit (RDTC) payments while they investigate some irregular claims.
- The majority of R&D relief claims are unaffected but there will be some delays to their usual processing times, this will ensure they prevent abuse of the relief.
- To help process R&D payments quickly, please ensure you have completed all entries on the R&D section of your Corporation Tax return (CT600 form).
- Submitting additional information to support the claim, such as the R&D report will help HMRC process the claim quicker.
- Review the latest guidance on completing your CT600 form on GOV.UK.
- If you submit a claim that is incorrect, inflated or fraudulent then you may be liable to a penalty. Read HMRC: standards for agents.
- HMRC ask R&D claimants to be patient and not to contact the R&D helpline/mailbox to chase their claims. Instead, agents should check the company’s online account to check the status of their claim.
We hope to be able to share more information with you in the next week.”
Chartered Accountants Ireland will keep readers updated.