Research and Development Tax Credit
The question
To ask the Chancellor of the Exchequer, what the average processing time is for HMRC Research and Development tax relief claims; and what steps she is taking to reduce that time.
Answered by Dan Tomlinson
HMRC seeks to balance its compliance efforts with the need to pay legitimate claims promptly. HMRC aims to process 85% of payable Research and Development (R&D) tax credit claims within 40 days. The 85% aim acknowledges that certain circumstances will necessitate further verification. HMRC continues to exceed this aim and in 2024–25, 89% of payable R&D tax credit claims were processed within 40 days. The figure for 2025-26 will be published in HMRC’s 2025-26 Annual Report and Accounts before Summer Recess.
All R&D claims go through a risk screening process with the majority paid without a compliance check. However, where risks are identified, further checks may be required to ensure eligibility for relief, which can extend processing times for some of these cases. HMRC aims to undertake any compliance check as efficiently as possible, working with the claimant to secure the relevant information to resolve the risks identified.
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