Research and Development (R&D) claims

The new HMRC requirements for R & D

Research and Development Tax credits

HM Revenue & Customs (HMRC) have introduced new measures in an attempt to tackle fraudulent Research and Development (R&D) claims.

One of these changes, which came into effect on 1st April 2023, applies to companies with an accounting period starting on or after 1st April 2023 which requires companies to make advance notification to HMRC.

Who must notify

A company must notify HMRC of their intention to make an R&D claim within 6 months of the end of the accounting period the claim relates to if:

  • This is the first R&D claim for the company.
  • The company has claimed for the previous year but did not submit the claim until after the last date of the claim notification period (the claim notification period ends 6 months after the period of account).
  • The last claim the company made was more than 3 years before the last date of the claim notification period.

If a claim is made without notification, HMRC have the power to amend the tax return to reject the R&D claim.

How to notify HM Revenue & Customs

The notification can be made online by either the company or the agent by completing and submitting the claim notification form available on HMRC’s website.

Once the notification is submitted, HMRC will provide a reference number which should be retained.

If a claim notification is submitted but the company decides not to go ahead with submitting an R&D claim for the period it relates to, no further action will be needed.

If the company does go ahead with the R&D claim, the company’s tax return has been updated to include an additional box which should be ticked to tell HMRC that a claim notification has been submitted.

Should you require assistance with notifying HMRC of your intention to make an R&D claim or have other R&D enquiries, please contact your local Perrys branch.