SR&ED Review, Refund Timeline and Cash Flow
SR&ED can extend runway, but it isn’t payroll cash you receive tomorrow. The money arrives after year end, the return, the claim preparation and CRA processing, and longer if the claim is reviewed. Plan for that gap.
How long does an SR&ED refund take?
After you file a complete claim, CRA’s standard is to process refundable claims accepted as filed within 60 calendar days, and to complete reviews of refundable claims within 180 days, meeting these standards 90% of the time (CRA’s SR&ED service standards). Add the time from the work to year end and to filing, and cash can arrive many months after the money was spent.
What does the timeline look like?
| Stage | When |
|---|---|
| Work performed and paid | During the fiscal year |
| Fiscal year end | Your company’s year end |
| Claim prepared and filed with the return | Often within a few months of year end; deadline 18 months |
| CRA processes the claim | Standard 60 days if accepted as filed |
| Review, if selected | Standard 180 days for refundable claims |
| Refund received | After processing or review |
What happens in a CRA review?
CRA may review the technical side, the financial side, or both. Expect questions about the uncertainty, the work done and the evidence, and about how costs were calculated. Good records make this faster; see SR&ED documentation. Bring the engineers who did the work to technical meetings.
How should you plan cash flow around SR&ED?
- When the work is done and when your fiscal year ends.
- Your tax filing date and claim preparation time.
- CRA processing and possible review time.
- The effect of grants and assistance on the final credit.
- Advisor fees, if you use one.
- Whether financing against the expected claim is sensible.
Model a base case, a reduced claim and a delayed claim. If you’re raising, include the expected credit carefully in your financial projections, separate from revenue.
Count it when it lands.
Plan conservatively and keep payroll independent of the SR&ED refund date.
How can you get the money sooner?
File promptly after year end with a complete claim; incomplete claims don’t start the clock. Some founders choose a fiscal year end that aligns with their cash needs, decided with an accountant. For estimates, see how much SR&ED you get back, and for advisor choices, consultant or do it yourself.
Frequently asked questions
How long does an SR&ED refund take?
CRA’s standard is 60 days for refundable claims accepted as filed and 180 days if reviewed, from a complete claim.
What happens if my SR&ED claim is reviewed?
CRA may review the technical work, the costs or both, usually with questions and meetings.
How likely is an SR&ED review?
It varies. First-time, large or unusual claims may be more likely to be reviewed. Good records help either way.
Can I get SR&ED financing before the refund?
Some lenders finance expected claims. Weigh fees and risk, and treat it as a cash-flow tool, not extra money.
How do I get my SR&ED refund faster?
File a complete claim promptly after year end, with clear records ready for any questions.
Should SR&ED be in my financial projections?
Yes, conservatively and separately from revenue, with timing that allows for delays.
Sources & further reading
Standards and platform rules change. These sources let you verify the current requirements directly. All screens shown are mock-ups of fictional products.