Do HMRC have the power to withhold repayment of R&D tax credits?

HMRC has the authority to withhold a R&D tax credit repayment until they are satisfied with all aspects of your claim, including the numbers, the R&D projects description (or technical narrative), and supporting methodology.

If HMRC has any concerns about your claim or its preparation, they may open an enquiry. The standard 28-day payment processing procedure will not apply in an enquiry; instead, HMRC will withhold the repayment until they are satisfied with the claim and have reviewed any additional information they require.

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HMRC wants you to file a properly prepared R&D claim. It’s important to make sure that your R&D tax credit claim is accurate end to end, from the accounting numbers, to the costs claimed for research and development, to the technical description and of course the calculation and classification of R&D costs.If your claim falls short on either numbers or what you write, your claim could be rejected, reduced or possibly attract a penalty in some cases.

‍R&D consultants can help you avoid these issues and guide you through the process of filing R&D tax credits claims with our 100% success record.

F6S can help with your R&D claim