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Nov 25, 2021

HMRC calls for early R&D submissions

Innovative businesses that receive tax relief through research and development (R&D) SME tax credits are being urged to submit their latest claims urgently.

HMRC said firms should "submit claims as soon as possible to avoid a delay in receiving payments between December 2021 and January 2022".

The tax authority issued the reminder as many companies have their accounting year-end aligned with the end of the calendar year.

This period of the year results in HMRC receiving a "significant increase" in the number of companies submitting claims.

HMRC said:

"Between December 2021 and January 2022, we expect to be dealing with higher volumes of R&D claims.

"While we remain committed to our aim of processing 95% of R&D tax credit claims submitted online within 28 days of receipt, we may take longer during the peak period."

SME R&D tax relief allows companies to have an extra 130% deducted from their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction.

Alternatively, a company can claim a tax credit if it makes a loss worth up to 14.5% of the surrenderable loss.

Speak to us about R&D tax credits.