HMRC now requires companies seeking to make an R&D claim to submit a claim notification form prior to submitting any R&D claim. This change was brought in with some of the recent changes to the scheme, similar to the requirements for filing an additional information form.
The claim notification form is something completely new to the UK scheme, and many businesses are unaware that this is now a requirement in order to submit a valid R&D claim. If you fail to submit the form in the allowable time frame then any R&D claim for that accounting period will be automatically lost, and be classed as invalid by HMRC and any cash benefit arising will be lost.
The claim notification form is now mandatory for accounting periods beginning on or after 1st April 2023
Despite you having the ability to amend a tax return to include an R&D claim for two years following the end of an accounting period, the claim notification form needs to be submitted within 6 months following the end of an accounting period, for example;
For an accounting period beginning on the 1st April 2023 and ending on the 31st March 2024, the claim notification form will need to be submitted by the 30th September 2024
Exemptions
There are some exemptions for submitting the form, for example if you’ve submitted a successful R&D claim in the last 3 years, however these exemptions are quite complicated because even if you have made a claim within the last 3 years, if the claim was submitted outside of the claim notification window, you will still need to submit a claim notification form. To reiterate, if the company is required to complete a claim notification form but fails to submit one, this will lead to the automatic removal of any R&D claim and no right to appeal irrespective of how innovative the work has been.
Main details that need to be captured in the form;
The main details that need to be captured within the form are;
- Company details which is included in the UTR number
- Main senior contact who is responsible for signing off the R&D claim
- Contact details of any R&D agent compiling the claim
- Start and end date of your period of accounts and accounting period that you’re making the claim for.
- and a high level summary of the planned activities and an outline of how your projects meet HMRC’s definition of R&D.
Get in touch with our industry experts today
Contact us today to get in touch with our team of Chartered Tax Advisors and let us help you navigate the complicated world of R&D tax relief claims. https://cbtax.com/contact-us/
