Navigating R&D claim processing delays

How you can minimise delays

There are certain steps that your business can take to assist HMRC in processing claims as fast as feasible. To support its teams, HMRC requests the following: 

• The company should submit a full tax return detailing the R&D claim spending, a report setting out the rationale for the R&D claim, a set of accounts, and the company's BACs number.
• This information should be submitted to HMRC via their internet portal, rather than giving paper copies, that must be reconciled to earlier submissions.

The key step you can take is to ensure your claim is correct and follows the legislation to the letter. You need to ensure that your processes and checks employed in preparing any claim are communicated to HMRC via their written report. This will allow an inspector to have more confidence that the claim is valid and can be processed with minimal delay. 

Many claims reports we see are high-level or boiler-plated, which leads to inconsistencies and confusion when compared with the costs included in the submission. Now is the time to revisit your report and ensure it’s clear, concise, and discloses all of the key steps taken to prepare the claim. Investing more time in your claim documentation could save you costly processing delays.

The other major issue with many R&D claims is that the company submitting the claim is unaware of how the numbers were prepared or why specific costs are being claimed. When reviewing claim we see some advisers are helpful in preparing an R&D claim but too often they share a limited version of the workings or present a final version of the claim with limited ability for review and challenge. HMRC is aware of this issue and will be implementing a company sign-off requirement next year. In the meantime, we recommend that you get up to speed with the R&D claim requirements, so you have the skills to interrogate your claims going forward.

How we can help

To avoid delays and reduce the likelihood of receiving questions from HMRC, our specialist R&D advisers can review your R&D claims. Our experts have backgrounds in engineering, science, and policy, allowing us to thoroughly understand the eligible work undertaken by your business.

If you’re facing an enquiry resulting from HMRC’s claim review process, Buzzacott’s dedicated R&D team is experienced in helping businesses to resolve HMRC queries. By working with us to understand your eligible activities and qualifying costs, we can provide an honest view on how best to resolve any enquiry. If you need help or want a second opinion on your options please get in touch. 

Get in touch

If you would like to speak to one of our R&D experts to find out more about how we can help, please get in touch via the form below.