Where a company has spent money on qualifying R&D, and the R&D claim will create a tax repayment, it is worthwhile getting the R&D claims submitted early.
It would be great if HMRC would pay these claims out promptly to further support companies as they weather the coronavirus storm. HMRC has a standard turnaround time of 28 days for making R&D repayments. It would be a real encouragement to companies if at this time they could make repayments earlier.
Companies can shorten their accounting periods at will, which does create additional administrative burdens, but for companies incurring substantial R&D costs this can be a great way to accelerate a tax repayment. For companies that are keen to boost their cash buffer for additional comfort through the coronavirus situation, this may be an action worth considering.
Some things to consider to ensure a valid claim is submitted:
Please speak to a specialist within our innovation taxes team if you would like support in accessing these valuable tax reliefs and unlocking potential cash for your business.
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