Does HMRC possess the authority to retain or withhold the tax repayment for R&D purposes?

The short answer is yes, HMRC has the authority to delay reimbursement of R&D tax credits to ensure that your claim is up to their standards. 

If HMRC have queries about your claim, they may investigate which places your reimbursement on hold until the investigation is complete. Unfortunately there isn’t an exact timescale for how long an investigation into your R&D tax credit claim may be.

However, as different aspects of your claim are mutually accepted throughout the course of the investigation, you can request partial payments that correspond with agreed upon terms.  Furthermore, HMRC has the right to request the money back from an R&D tax credit claim. This typically happens when HMRC decides to open an enquiry after the payment has been processed.

This is why it is so important to submit an accurate and robust claim. Click here to find out how we can help improve your claim.