Could readers indicate please how long their R&D tax credit repayment claims are taking: from the initial claim being made to receiving the cash repayment, i.e. where the excess loss arising from enhanced expenditure is surrendered for an 11% tax credit.
Our client company is being asked this by their bank as the repayment due is £40k and needs to be taken into consideration in cashflow and loan facility planning.
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Replies (5)
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How long is a piece of string...
Depends whether it gets picked up for review or not, and how much information you provided with the CTR.
Had small amounts (circa £2,000) repaid within 2-3 weeks, and didn't provide additional information with the return. Equally had larger ones take a few months even though full and detailed disclosures/evidence given.
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As an aside, do they own and VAT or PAYE? If so it will be held back until this is cleared up.
Usually within 28 days
Usually with regards to a payable tax credit it's within 28 days of the R&D unit receiving the claim (http://www.hmrc.gov.uk/manuals/cirdmanual/cird80525.htm), however there can sometimes be a delay in the claim getting to them of a few weeks so it may be worth calling whichever unit is dealing with it to check they are aware of it.
Also if you haven't included the clients bank details on the CT600 a cheque will be issued and this can add a week onto the process.
Typically we see claims processed and the funds issued between 2 and 8 weeks from the date of submission.
This claim took 31 days from the CT600 being submitted
The CT600 was submitted on 22 September and the HMRC remittance advice was issued on 23 October.
excellent
That's pretty typical at the moment, but at times can be a bit longer.
Glad it's all sorted.