HMRC aims to process R&D Tax Credits claims within 28 days. However, in our experience, processing times range from anywhere between 28 and 90 days. It then takes another five to ten days for the money to be transferred into your account. In total, it can take up to 100 days to receive your R&D Tax Credits.
As this diagram shows, there’s a lot of variation in processing times, and that’s assuming your application is successful. The problem is HMRC has limited resources to process claims. Backlogs can quickly form during busy periods, which take a while to resolve. Also, as HMRC recently reported, the total number of R&D Tax Credits claims is increasing. This is putting more strain on the organisation and contributing to increasing turnaround times.
Other Mitigating Factors
Other factors can lengthen your application’s processing time, particularly the time of year and the complexity of your claim. December and March are popular times for financial year-ends. In these months, HMRC has a lot more applications and tax filings to deal with.
Your application can also take longer to process if your business and/or your claim are particularly complex. For this reason, it usually takes HMRC more time to process claims from larger companies, like those applying for the RDEC scheme.
Get Your Tax Credits Earlier
All in all, you could be waiting a while for your R&D Tax Credits. But through GrantTree’s Advance Funding service, you could get your hands on your tax credits cash a whole nine months before your filing date, and perhaps a entire year before HMRC processes your application. Through Advance Funding, you could accelerate your investments in staff and equipment and bring your product or service to market sooner.
If you have any questions about your application, Advance Funding, or R&D Tax Credits generally, feel free to give us a call on 020 7748 8999 or send us an email. Our team of tax credits experts would be happy to help.
If you are curious about R&D Tax Credits, Innovation Grants and Open CultureGET IN TOUCH
It's GrantTree's ninth birthday today! Our founder, Pow Tenner, is reflecting on the past nine years of the company, and how it grew from a two-person operation into one of…
50 years on from its first screening, one thing keeps Star Trek as relevant, engaging and important as ever: Its vision for a better humanity. Let me come clean. The…
Sleep deprivation costs the UK economy billions of pounds a year. But by supporting sleep with sensible policies, companies can reap the rewards of a happier, healthier and more productive…
Our latest 'A Day in the Life' entry comes from inbound sales champion Max Peak. Max took advantage of GrantTree's flexible working policy and spent the day on the Isle…