Research & Development Tax Credit delays
HMRC decided to pause payments for Research & Development Tax Credits in April due to an increase of fraud, mostly linked to organised criminal gangs.
In April alone, HMRC had received over 8,000 claims and although started paying some claims from 10th May, HMRC are still recovering from the recent pause in payments, and expect to be processing 80% of claims within 40 days by the end of this month.
Over a thousand letters have been issued to claimants identified as high risk challenging irregular claims. HMRC request that claimants do not contact them to chase their claims, as they work through the backlog.
Therefore, if you are waiting for an R&D Tax Credit payment, it may take a little longer than it used to.