Research and Development Tax Credit Update HMRC has provided an update on Research and Development Tax Credit payments, via the CIOT. Investigations into irregular claims are still ongoing. Furthermore, HMRC has made it clear that the investigations are to stop the abuse of the relief. However, delays in the processing time of claims have increased.
Research and Development tax credit payments on hold HMRC have paused Research and Development tax credit payments. Investigations are also now underway into irregular claims for the tax relief. HMRC says that most of the claims are genuine and that the investigations should have no impact. However, delays are now expected when processing R&D claims,
Research and Development tax credit changes Research and Development (R&D) tax credits are intended to support companies who invest in science and technology projects. To qualify for R&D tax credits companies must be developing or enhancing new or existing products, services or processes. Staff costs, software and research contributions all qualify under R&D. However, during
According to HMRC, over the last year, more than 50,000 small businesses made Research and Development tax credit claims. Overall, the tax relief came to a total of around £6 billion, half of which was claimed by small companies. R&D tax relief allows for small and medium sized enterprises (SMEs) to deduct an extra 130%
In recent months, HMRC has been investigating fraudulent Research and Development (R&D) tax relief claims. In November 2020, HMRC arrested three men involved in a fraudulent tax relief claim for £29.5 million. Through one of the individual’s companies, the three men tried to acquire tax relief on £137 million, for the purposes of developing a
