Dealing with delays and uncertainty – Maintaining value in R&D tax relief claims

Advances in technology are changing the way that we interact with the world around us.

The ability to tap a few icons on a screen and have instant access to anything we can imagine means that our expectations for what is possible have changed to expect this immediacy across all aspects of life.

HMRC’s processing of R&D tax reliefs is not likely to be as immediately gratifying as doomscrolling TikTok, so innovative businesses may need help from accountants in handling delays and uncertainty.

Is HMRC too slow to process R&D tax relief claims?

How long is the ideal amount of time to wait for an R&D tax relief claim to be processed is in the eye of the beholder.

Many innovative businesses would likely enjoy a system that provided a relief as soon as the claim was submitted to HMRC, but this is unlikely to ever be the reality.

Instead, HMRC does have a goal for handling R&D tax relief claims, even if this does not entirely align with reality.

It is widely known that the goal has been for HMRC to process 95 per cent of all claims within 28 days, but it recently revealed that it instead succeeds in processing 89 per cent in 40 days.

The processing of R&D tax relief claims can be slowed down in the event of an enquiry.

While standard processing is relatively swift, enquiries have garnered a reputation for being time-consuming and challenging, leaving some innovative businesses in difficult positions.

This is worsened when an enquiry is launched after funds have already been issued, meaning that a business has to put aside additional funds to repay the relief should it be found to have been awarded erroneously.

Concerns around the time it can take to process claims and enquiries have caused some accountants and innovative businesses to shy away from the scheme, particularly when a perception of inefficiency and uncertainty is amplified in the news.

Can anything be done to make an R&D tax relief claim get processed sooner?

There is not much that can be done to aid the processing of the initial R&D tax relief claim, although being confident that it is fully compliant may help to reassure you that any wait will be worthwhile.

Enquiries can be more complicated to approach, but this does not mean that accountants or innovative businesses should give up.

HMRC will issue questions pertaining to the issues identified with the R&D tax relief claim, so being prompt and efficient in responding to these can avoid additional delays.

However, this should not be seen as a mandate to respond in haste to an enquiry simply so that the process moves along.

Being careful with an enquiry response can reduce the risk of further questions being asked, as it may be possible to settle the concerns of HMRC by providing the necessary evidence.

Getting professional support for each stage of the R&D tax relief process, especially enquiry defence, is the most effective way to prevent things taking longer than they need to.

Our expert team of R&D tax consultants are adept at handling HMRC enquiries, with a track record of settling some within a single response.

While not every enquiry will be as swiftly resolved, we will keep you and your client aware of what is happening and engage with HMRC to bring an end to proceedings as soon as possible.

While we do support the defence of valid R&D tax relief claims, this process is more effective when we supported the initial preparation of the claim.

This is due to us sense checking a project at every step to make sure that any risks are addressed and that everything in the claim is fully compliant.

We also get to know the project and the professionals so we are well positioned to defend the claim in the event of an enquiry.

While accountants should know that their clients may face some delays in getting their R&D tax relief claims processed, being proactive and compliant is the best way to make the most of the scheme and ensure it operates relatively efficiently.

If you want to take a more effective approach to R&D tax relief claims, get in touch with our team today.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.