How long does it take to receive R&D tax credits?

If you are an accountant looking to help a client with R&D, you will undoubtedly have been asked how long they can expect to wait to get their R&D tax credits.

Impatience is understandable, given the economic pressures that businesses are facing.

The answer is more complicated than it might seem, so it is worth knowing how to respond when clients ask you the question.

How long does it take to process an R&D tax relief claim?

While HMRC aims to process 95 per cent of all claims within 28 days, this is by no means a fixed guarantee.

If you have looked for the answer online in a desperate attempt to manage a client’s expectations, you will have seen a range of different estimates being given for how long it can take.

This is likely due to the way that different R&D tax relief claims are prepared, as well as when they are submitted.

Depending on the nature of the claim, or even the time of year in which the claim is submitted, the time taken to process it can be notably different.

December and March are the busiest times of year as a result of the number of companies whose accounting periods tie into these months.

One way to expedite the process is by filing the R&D tax relief claim with the original tax filing rather than as an amendment.

This is due to HMRC generally proving quicker to process claims when tax liabilities are reduced before profitable companies pay their Corporation Tax.

Ultimately, there is little that can be done in many cases to make a claim be processed faster, as it is often tied to the nature of the claim and the level of expenditure included.

Are R&D tax credits issued as soon as the claim is processed?

There is a common misconception about when an R&D tax relief claim is final.

Claims that yield R&D tax credits are often thought of as ‘approved’ by HMRC, but most claims are automatically processed without intervention. 

This can lead to seemingly approved R&D tax relief claims being flagged for an enquiry after the R&D tax credits have been awarded.

Alternatively, enquiries can be launched before the R&D tax credits are given, resulting in a notable delay in receiving the desired funds.

Working with an R&D tax consultant is one of the few ways of speeding up the process of getting an R&D tax relief claim processed and approved.

We work with accountants and innovative businesses to ensure that all parties understand a reasonable timeframe within which their claim is likely to be managed.

This means we caution against being too impatient on claims that are likely to take longer or may trigger an enquiry due to them being deemed as higher risk.

The way in which we move the process along efficiently is by ensuring that R&D tax relief claims are of high quality.

A better quality claim is more likely to be processed as it should be subject only to random enquiry rather than becoming the focus of an HMRC agent.

Where enquiries do arise, having our expert support can ensure that the matter is dealt with effectively, preventing the delays from dragging on for too long.

If an accountant or an innovative business feels that their R&D tax relief claim may have slipped through the cracks, we can liaise with HMRC to discover where in the process it currently resides.

For R&D tax relief support that won’t slow you down, speak to 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.