In these strange and uncertain times, cashflow is king. Helpfully, HMRC appreciates this and has provided a few helpful confirmations:
- The processing of claims is being prioritised – R&D tax credit and RDEC claims are currently being processed within 28 days of receipt (a few exceptions were noted that should be rectified by 20 April)
- HMRC will be sympathetic to late claims under the usual (SP5/01) process (but do still file asap)
A few points of caution to note too:
- An SME still needs to be a ‘going concern’ per the last published accounts
- CBILS* is a notified state aid so could impact SME claims if the loan is for the company’s R&D expenditure on a project
- Claims may not be paid in full where a business has other liabilities (e.g. PAYE, NIC) owing to HMRC – there is currently no discretion on this for RDEC claims and further thought is being given to SME claims. Note, an agreed deferral of payment should not impact.
The PAYE Cap further consultation is now open with responses due by 28 May 2020. The data and cloud computing costs consultation will be published in due course.
*Coronavirus Business Interruption Loan Scheme
Do get in touch if you have questions or would like to discuss what this means for your business. Stay safe everyone 🙂
