I’ve received a letter from HMRC about my R&D tax claim. What do the different notifications mean?

HMRC’s terminology is often ambiguous and difficult to decode. This is particularly true when it comes to the letters they send out to inform you of the status of your payment after submitting your R&D tax claim.

If you’re unfamiliar with HMRC’s procedures or language, you might be misled into thinking you’ve been paid when you haven’t. To avoid confusion or disappointment on your part, we’ve pulled together the three most common notifications that HMRC send to businesses awaiting payment. 

If the notification says processed, it means the claim has been accepted by HMRC as a valid R&D claim, the report has been read and repayment has been approved to be granted (either as cash or credit).

However, it does not mean the money has been transferred to your account or your advisor’s. We say ‘your account’ or ‘your provider’ because you have the option of submitting the claim yourself or through your advisor.

If the notification says payment creation, it means that HMRC is working out the precise amount to be transferred and who will receive the credit (your company or your advisor). 

However, it does not mean the money has been transferred to your account or your advisor’s.

If the notification says payment issued, it means that HMRC have pressed ‘send’ on payment and it should land in the chosen bank accounts within the next 3-5 working days.

Whilst you’re very nearly there, it does not mean the money has yet been transferred to your account or your advisor’s.

At EmpowerRD, it is important to us that you receive your payments as soon as you can. That’s why our finance team checks our bank account on a daily basis. Once a payment has been received, our staff checks the amount and compares it to the report provided to ensure it matches what you expected to receive.

Once everything has been verified, our finance team will reach out to you directly, confirming we’ve received the funds and that they made a nominal payment.

If you are still unsure about HMRC’s notifications, get in touch with one of our specialist R&D advisors today and we’ll be happy to help.