Innovative businesses that receive tax relief through research and development (R&D) SME tax credits are being urged to submit their latest claims urgently.
Afford Bond Director, Lindsay Beeston said: “HMRC has requested that firms should submit claims as soon as possible to avoid a delay in receiving payments between December 2021 and January 2022. No-one wants a payment delayed or withheld, especially at this time of year, so please do ensure all your paperwork is up to date and accurate if you wish to submit a claim.
HMRC issued the reminder as many companies have their accounting year-end aligned with the end of the calendar year. This period of the year results in HMRC receiving a “significant increase” in the number of companies submitting claims and coupled with the impact of Covid on staffing levels, delays may occur.
HMRC said: “While we remain committed to our aim of processing 95% of R&D tax credit claims submitted online within 28 days of receipt, we may take longer during the peak period.”
SME R&D tax relief allows companies to have an extra 130% deducted from their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction.
Alternatively, a company can claim a tax credit if it makes a loss worth up to 14.5% of the surrenderable loss. If you need expert R&D tax credit help for your business, email Lindsay.Beeston@affordbond.com or use the Contact Us form on our website.