How will I receive my R&D tax credits?

The way you receive your R&D tax credit payment depends on the scheme in which your claim falls under, and the current financial position of your business. 

Businesses can usually expect their credits in one of the following ways:

• A single cash payment
• A reduction in your corporation tax
• A carry forward or backward of an enhanced loss
• A mix of all of the above

Under certain circumstances, HMRC will take into consideration your wishes, so it is possible to request a mix of ways that the credit is afforded to you.

If your claim is filed under the SME scheme, then you can expect to see a reduction against your taxed profits, or even get a cash payment if your business is loss making.