In a note to the CIOT, HMRC has responded to questions around
whether R&D claims will be paid in full even where a business has
outstanding tax liabilities. Where a VAT liability has been deferred under the
measure announced in relation to coronavirus (deferral for the period 20 March
to 30 June 2020), the R&D credit or RDEC will not be set off against the
VAT liability.
For other outstanding tax liabilities, however, the RDEC or
R&D tax credit will be offset. According to the CIOT, this will include any
VAT debts outside of the coronavirus deferral period, and any tax paid late by
companies even where a time to pay arrangement is in place.
In a note to the CIOT, HMRC has responded to questions around
whether R&D claims will be paid in full even where a business has
outstanding tax liabilities. Where a VAT liability has been deferred under the
measure announced in relation to coronavirus (deferral for the period 20 March
to 30 June 2020), the R&D credit or RDEC will not be set off against the
VAT liability.
For other outstanding tax liabilities, however, the RDEC or
R&D tax credit will be offset. According to the CIOT, this will include any
VAT debts outside of the coronavirus deferral period, and any tax paid late by
companies even where a time to pay arrangement is in place.
