R&D tax credit processing times can vary – but for many SMEs, HMRC aims to make repayments within 28 days of a valid claim being submitted. However, this is a target, not a guarantee. Actual timescales depend on a number of factors, including the nature of the claim, HMRC’s workload, and current levels of scrutiny.
HMRC’s 28-day target for SMEs
HMRC seeks to process SME R&D tax credit claims, particularly payable credit claims, within 28 calendar days of submission. This only applies to complete, low-risk claims submitted through the correct channels. It doesn’t include the time it takes for funds to reach your account, which can add an extra 7–10 working days.
However, during periods of increased scrutiny or seasonal peaks (such as around March, September, and December year-ends), delays can occur. If your claim is flagged for review or deemed higher risk, processing times will naturally be longer.
Corporation Tax refunds may be quicker
If you’re claiming R&D relief as a Corporation Tax refund, because you’ve already paid tax on profits, your repayment may be processed faster. HMRC can sometimes adjust and repay these automatically, without needing to manually inspect the claim, meaning repayment can be received within a week. However, this depends on the complexity of your return and any other open items on your account.
Larger companies and RDEC processing times
For larger companies claiming under the Research and Development Expenditure Credit (RDEC) scheme, processing times are typically longer. These claims often require more in-depth review and can involve multiple HMRC teams. As a result, RDEC claims may take several weeks or months to process, particularly if the claim includes large amounts or spans multiple projects.
What can delay an R&D tax credit claim?
There are several reasons why HMRC might delay or review your claim:
- Seasonal workload: Busy periods (April–July and January–March) can slow down processing.
- Risk profiling: HMRC uses a “process now, review later” model. Claims that appear inconsistent with their expectations may be flagged for further review or enquiry.
- Fraud checks: HMRC has increased its efforts to tackle error and fraud in R&D claims, including temporarily pausing payments to focus on reviewing high-risk submissions.
- Incomplete or poorly supported claims: Claims that lack robust documentation or technical detail are more likely to face delays or enquiry.
Important: Payment ≠ approval
Even if your claim is processed and paid, it may still be reviewed at a later date. HMRC has up to 12 months to open an enquiry after submission. This is why ensuring your claim is accurate, compliant, and well evidenced is critical.
Final thoughts
While HMRC aims to process SME R&D claims in 28 days, the actual timing depends on the complexity of your submission and their internal risk assessments. If you need funds urgently, it’s important to prepare a robust, clear and complete claim and submit it well ahead of busy periods.
For extra confidence, it may be worth seeking an independent review of your claim before submission – especially if you're making a large claim or have previously received an enquiry.
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