HMRC: R&D Claim Notification Changes Issued, Impacts Tax Relief

• HMRC has updated its guidance for `Research and Development Corporation Tax relief`, including changes to claim notification procedures.
• The deadline for submitting the `HMRC additional information form update` was adjusted from August 1, 2023, to August 8, 2023.
• Companies claiming `R&D tax relief` for accounting periods starting on or after April 1, 2023, must generally submit a claim notification form within a specified period to avoid invalidation.
• First-time claimants have a specific submission window between January 1, 2024, and June 30, 2025.
• The requirement for the `R&D tax relief claim notification form` will be abolished for all claims made on or after April 1, 2027.

Crucially, for claims pertaining to accounting periods commencing on or after April 1, 2027, the requirement to submit a claim notification form will be entirely removed, simplifying the process significantly in the long term.

Her Majesty's Revenue and Customs (HMRC) has recently issued updated guidance concerning the notification process for `Research and Development Corporation Tax relief` claims. These revisions aim to clarify existing requirements and introduce significant future changes, impacting how businesses interact with the tax authority regarding their `R&D tax relief` entitlements. The updates include improved explanations for submission timings, details on who must notify, and the statutory deadlines involved, alongside a new 'Before you start' section designed to enhance user understanding.

Among the immediate procedural adjustments, the submission deadline for the `HMRC additional information form update` was revised. Initially set for August 1, 2023, this date was subsequently moved to August 8, 2023. Furthermore, previous text suggesting a voluntary submission of this form prior to its mandatory implementation date has been removed, streamlining the guidance. These changes underscore HMRC's ongoing efforts to refine the `UK R&D tax relief guidance` and ensure compliance.

For companies planning to claim `R&D tax relief` or `HMRC R&D expenditure credit` for accounting periods that commenced on or after April 1, 2023, a `R&D tax relief claim notification form` is generally mandatory. Failure to submit this form within the designated 'claim notification period' will render the entire `R&D tax relief` claim invalid. This critical period is determined by the company's accounting period start and end dates, as well as the specific period for which the claim is being made.

The claim notification period applies uniformly across all accounting periods, even if a period of account spans more than 12 months and thus encompasses multiple accounting periods; in such cases, only one form submission is necessary. Companies that have previously claimed `R&D tax relief` within three years of the last date of their claim notification period are typically exempt from this requirement, unless specific exceptions apply. However, if a company's last claim was made more than three years prior to this date, or if any exceptions are relevant, a new notification form must be submitted. First-time claimants for `R&D tax relief` are subject to a specific submission window, needing to file their notification form between January 1, 2024, and June 30, 2025.

Looking ahead, a pivotal change is slated for `R&D tax relief 1 April 2027`. For claims made on or after this date, the requirement to submit a `R&D tax relief claim notification form` will be entirely abolished. This significant simplification aims to reduce administrative burden for businesses seeking `Research and Development Corporation Tax relief` in the future. Until then, however, businesses must diligently adhere to the current notification procedures and deadlines to ensure their claims remain valid.

Beyond the notification form, HMRC has also provided clearer instructions regarding the necessary contact details for agents involved in the claim process. The guidance now explicitly clarifies who needs to submit the form, the statutory deadline for doing so, and which agents must provide their contact information. These amendments, including adjustments to example dates within the guidance, are part of a broader effort to enhance clarity and ensure businesses can navigate the complexities of `UK R&D tax relief guidance` effectively.

Lawyers and compliance officers must review the updated HMRC guidance on R&D tax relief claim notifications to ensure clients comply with the correct submission deadlines and procedures, particularly the revised date for the additional information form and the future removal of the notification form requirement for claims made on or after April 1, 2027, to prevent claim invalidation.

Source: Original reporting via GOV.UK guidance