Research: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of HMRC’s operational capacity and performance standards for processing R&D tax credit repayments.
Answered by Dan Tomlinson
The Government recognises the important role that research and
development (R&D) plays in driving innovation and economic growth as well as the benefits it can bring for society.
HMRC actively balances its compliance efforts with the need to ensure those who are eligible for relief receive it promptly. HMRC consistently meets its aim to process 85% of payable R&D tax credit claims within 40 days. HMRC exceeded this target in both 2023–2024 (92%) and 2024–2025 (90%). For the current financial year so far, HMRC has met its 85% processing target every month.
The Government is committed to improving the administration of the reliefs, to make it easier and more reliable for legitimate claimants while continuing to protect taxpayer money from unacceptable levels of error and fraud in the system.
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