R&D repayment claims will not be offset against liabilities under HMRC deferral agreements

Companies that spend money developing new products, processes/systems or enhancing existing ones, can be eligible for R&D tax relief.

If you are spending money whilst undertaking innovative projects, you could potentially make an R&D tax relief claim to receive a reduction against your company’s Corporation Tax liability.

However, some businesses are eligible for a cash payment if they do not have a corporation tax liability.

If you are a company which is able to receive the R&D tax benefit as cash, in light of the ongoing pandemic and the effect it is having on businesses, a vital cash injection could be just what your business needs. So making a claim is more important than ever and having the right advisor by your side crucial.


Delayed HMRC payments are irrelevant

SME repayable credit and the RDEC payable amount are normally offset against other tax liabilities due, before being repaid to a company.

However, R&D tax benefits repaid as cash will not be subject to offset against tax deferred under a coronavirus scheme. This means that if your business has, for example, deferred its VAT liability until 31 March 2021, R&D repayable claims will still be repaid to the company.


Act now

Obviously, the earlier you begin the claim process, the earlier your businesses will receive the cash. Now is the time to be proactive and get ahead by starting the R&D claim process as soon as possible.

It doesn’t matter if your business has deferred VAT liabilities, HMRC will continue to repay R&D credits which could provide a much needed cash injection for your business at the current time.

Get in touch with our expert team today to see if we can help. We have an extensive track record in successful R&D claims across a variety of industries. You can call us on 01204414243, email us via our Contact page or request a callback for an ideal time using the popup in the bottom-right corner of this page.