HMRC has addressed the delay in R&D tax credit processing times and paused payments in a message to the Chartered Institute of Taxation (CIOT).

HMRC stated that since April, it has faced an increase in fraud within the R&D tax credit relief system and paused all payments on 28 April 2022 so it could investigate irregular claims.

By the end of August, HMRC now expects to be processing 80% of the claims within 40 days.

Since 1 April, HMRC had received over 8,000 R&D claims, which all needed further scrutiny.

Over 1,000 letters have been issued to claimants who have been identified as high-risk, challenging and irregular claims.

HMRC has requested that claimants do not contact the R&D helpline and for agents and companies to instead review their claims via their online accounts.

A spokesperson from HMRC said:

"We recognise that these additional checks may cause delays to legitimate businesses and appreciate their patience as we work through these exceptional circumstances.

"We hope that our recent activity reassures agents that we are committed to tackling abuse of the R&D relief scheme, ahead of the R&D reforms announced previously at Autumn Budget 2021."

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