R&D Tax Credit transferred to next Accounting Period was not used up but can't get it paid out.

Our previous R&D Tax Credit claim resulted in a cash refund, which was issued as a HMRC credit on the next accounting period's corporation tax. After completing our most recent accounts we did not use up all this tax credit, so now our corporation tax account shows a negative balance (money owed to us). We contacted the HMRC phone helpline to get the refund paid and they said they could see it but they can't release the money as the credit was issued by the R&D team. We have emailed the R&D incentives team but have had no response. Isn't HMRC obliged to repay overpaid corporation tax once asked, under the Taxes Management Act 1970 Section 59DA? HMRC Admins, what can we try next please? Our RDTC claim was over 40 days ago and we have emailed rd.incentivesreliefs@hmrc.gov.uk about this, last time was more than 5 days ago.

Got to give credit to this forum's HMRC Admins & the R&D team - I posted this yesterday and as of this morning our online HMRC Corporation Tax account shows there is a BACS repayment coming, with interest. Thanks all!

Feedback .

 

I have the same issue in that my Corporation Tax Account is showing a credit from an R&D payment but I am unable to get hold of anyone to tell me whether the credit will be repaid in cash and if so when. Who do I need to contact to find out?

Hi ,
 

If the company's HMRC online accounts shows a credit, you have asked for repayment and there are no outstanding liabilities, repayment will be issued.  The repayment method will depend on whether bank details have been provided and the amount of the repayment.  Repayments over £150,000 can only be made into a bank account.  The timescale for a repayment into a bank account is usually 5 to 10 working days from issue.  Credit interest on the R&D tax credit will be dealt with once the normal tax due date for the accounting period has passed.  Queries relating to R&D Tax Credits must be emailed to : rd.incentivesreliefs@hmrc.gov.uk . Thank you .