§ Mr. RobathanTo ask the Chancellor of the Exchequer what measures are being taken to ease the financial burden on firms whose research and development tax credit claims are under retrospective investigation by the Inland Revenue. [143353]
§ Dawn PrimaroloCompanies claim R&D tax credits by entering figures on their Corporation Tax Self Assessment return at the end of the accounting period in which the R&D is undertaken. Companies self assess the amount of R&D tax credits due to them and receive payment of any R&D tax credit in line with their self-assessment.
Only a proportion of returns which contain an R&D tax credit claim will be inquired into. Where a return is inquired into, payments of the tax credit may be withheld during the inquiry but interim payments can be agreed.